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Philippines : P10B Tier 2 notes launched by Security Bank

June 24, 2014



Security Bank Corporation has introduced the public offer of its Basel III Compliant Tier 2 Notes in the aggregate principal amount of up to P10 billion.

The public offer period starts from June 19 to July 3, 2014, with issue date on July 11, 2014. The bank on the other hand, has the right to close the offer period earlier.

The notes will have a term of 10 years, with an issuer s call option after 5 years.

The notes may be acquired in minimum denominations of P500,000 and in increments of P100,000. The interest will be paid quarterly.

Security Bank is releasing the notes to additionally raise its total Capital Adequacy Ratio so as to support the continuing growth of the bank s financial assets.

The bank is the 8th biggest in total assets among private domestic universal banks in the country with total assets of P377 Billion, 7th biggest in loans with loan portfolio of P166 billion, and 8th largest in capital at P42 billion as of March 31, 2014.

Furthermore, Security Bank s Notes issuance is corresponding to the more prudent capital regulations executed by the Bangko Sentral since January 2014 following the stricter Basel III global standard for banks.

Security Bank has mandated Deutsche Bank, The Hongkong and Shanghai Banking Corporation Limited, and Standard Chartered Bank as the Joint Lead Arrangers of the offering and as Selling Agents. Security Bank will be a Limited Selling Agent and Multinational Investment Bancorporation will be the Market Maker and a Selling Agent. The Trust Services Group of the Development Bank of the Philippines will be the Public Trustee.

The Bank has been in service for 63 years since it was set up in 1951.


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Source: TendersInfo (India)


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