Security Bank Corp. said its $300-million offshore notes issuance has received strong demand, as final order book was 5.8 times oversubscribed, amounting to $1.75 billion.
Security Bank President and CEO Alberto Villarosa said they were overwhelmed by the strong interest of investors for the inaugural issuance of $300-million senior unsecured notes.
“We thanked our investors for their overwhelming support as Security Bank is backed by its solid credit profile. It continues to proactively support clients and the Philippine economy in this exciting era of growth,” Villarosa said in a statement sent to the Philippine Stock Exchange.
The senior notes received strong investors’ demand, as shown by the final order book which was oversubscribed by 5.8 times across 187 accounts, amounting to $1.75 billion. The bank has decided to access the international market.
Based on the distribution by geography, the Philippines had 58 percent; Asia, excluding the Philippines, 35 percent; and Europe, 7 percent.
By investor type, the banks have the largest share with 50 percent, followed by fund managers with 38 percent.
The senior notes were priced at par with a yield of 3.95 percent and will pay a coupon at the rate of 3.95 percent per annum on a semiannual basis.
The dollar notes maturing on February 2020 will be used to proactively extend the duration of its US dollar liabilities.
The issue date and closing will be on February 3. It will be listed on the Singapore Exchange Securities Trading Ltd.
The senior notes received a bond issue rating of “BB+” from Standard and Poor’s.
ANZ, Deutsche Bank and UBS acted as the joint lead managers and joint bookrunners for the senior note issuance while Development Bank of the Philippines and SB Capital acted as domestic lead arrangers.
Genivi Factao