Security Bank starts with P5B note issuance
Security Bank Corp. is offering long-term notes this October.
The listed lender will officially kick off its offering of P20 billion worth of long-term negotiable certificates of deposit (CDs) on Tuesday, Oct. 17. In a disclosure, the bank said they will be selling at least P5 billion worth of debt papers until Oct. 30, which will carry an annual interest rate of 3.875% for a 5.5-year term.
“Security Bank is offering the CDs to better manage their liabilities and ratios, while also expanding their funding and investor base. CDs have been an effective way for banks to raise cost-effective funding, while offering a new investment product to their own deposit base, most of whom are looking for long term assets that provide higher yields than traditional time deposits,” the bank told the Philippine Stock Exchange.
Global firms HSBC and Standard Chartered Bank will serve as joint lead arrangers and bookrunners.
Minimum investments are at P50,000, plus increments of P10,000 thereafter.