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Security Bank raises P2 billion via LTNCDs

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SECURITY BANK Corp. has raised P2.07 billion via long-term negotiable certificate of deposits (LTNCDs), which will be used to diversify its funding sources and finance expansion plans.

In a stock filing yesterday, the bank said they upsized the issue from the initial P1-billion offer amid strong demand mainly from retail investors, with total bids reaching P2.07 billion.

The 5.5-year LTNCDs were issued yesterday, Feb. 5 and will mature on Aug. 5, 2025.

The issuance marked the third tranche of the lender’s P20-billion bond program.

Multinational Investment Bancorporation (MIB) served as the sole lead arranger and selling agent, with assistance from Security Bank.

The bank did not respond to queries on the coupon rate for the issuance as of press time.

In December, the bank issued P2.31 billion in LTNCDs, while first drawdown out of the program raised P6.06 billion in September last year via five-and-a-half-year LTNCDs, priced at four percent.

Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”

As of end-September 2019, Security Bank ranked as the seventh-largest bank in the country in terms of assets, with total assets of P803.092 billion.

Its shares closed at P176 each on Wednesday, up by P4.10 from the previous day’s close. — Beatrice M. Laforga





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