Security Bank shatters target with fivefold oversubscription, raises P21B

Tycoon Frederick Dy’s Security Bank Corp. has pulled off its biggest fundraise yet, completing a record P21 billion bond issuance that drew overwhelming investor demand, more than five times its initial P5 billion target.

The five-year bonds carry a fixed rate of 6 percent per annum and will mature in 2030. 

The issue was listed on the Philippine Dealing & Exchange Corp. (PDEx) on Oct. 29, marking another milestone in the lender’s funding diversification strategy.

Proceeds from the offering will be used to expand lending across key economic sectors and support the bank’s long-term growth plans.

 Management’s view

“We’re grateful for the market’s confidence,” said Jim Yap, Security Bank executive vice president and financial markets segment head. 

“This successful issuance reaffirms investor trust in our strategy and strengthens our ability to fund growth while delivering on our BetterBanking promise,” he added. 

Philippine Commercial Capital Inc. and Security Bank Capital served as joint lead arrangers and selling agents for the transaction.

—Edited by Miguel R. Camus