Security Bank hikes bond offering

Security Bank Corp. said Tuesday that it would be doubling its peso bond and commercial paper program to P200 billion from P100 billion following board approval, according to a report by Manila Times.

It told the stock exchange that an issuance could follow "subject to market conditions."

In a Viber message, the bank said the "peso bond program size prior to the recent board approval was already at P100 billion."

"The bank already issued and/or utilized P80.6 billion to date (all via peso bond issuances). Hence the decision to upsize so that the bank can remain flexible in terms of its ability to raise funds in the debt capital market/s moving forward," it added.

In April, the Chartered Financial Analyst (CFA) Society of the Philippines named Security Bank's peso bond fund as the best peso long-term bond, while its Philippine equity index fund topped the peso equity index category, with both seen delivering the best performance metrics relative to their peers.

The bank's peso bond fund was hailed for its exceptional returns with lower risk as the fund is strategically invested in a diverse mix of investment securities with varying maturity periods.

Last month, Security Bank successfully raised $400 million from the issuance of senior unsecured fixed-rate notes for its capital base expansion, investments and other general corporate purposes. The five-year dollar-denominated notes, due in May 2029, carry a yield of 5.5 percent per annum.

Security Bank shares dropped by P2.55, or 3.91 percent, to P62.60 each on Wednesday amid a 0.22 percent rise for the benchmark Philippine Stock Exchange index.