Security Bank Corporation Issues US$400 Million 5-Year Reg S Senior Unsecured Notes Offering

As a drawdown from its US$1 billion Medium Term Note Program, approved by the board, Security Bank Corporation has issued US$400 million in 5.50% Senior Unsecured Fixed Rate Notes (Notes), due May 14, 2029. The transaction was announced on the back of a series of global investor calls that were held on May 6, 2024.

Proceeds from the Notes will be used to expand funding base, fund investments, and other general corporate purposes.

"We're very pleased about the strong demand and successful pricing of our dollar bond issuance. This transaction reflects the market's continued confidence in Security Bank's credit strength and growth prospects. The issuance also diversifies our funding sources and enhances our ability to serve our clients across various segments and sectors," said Arnold Bengco, Security Bank EVP and Financial Markets Segment (FMS) Head.
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The bonds were first offered at US Treasury bonds plus 140 basis points. More than US$1.5 billion worth of orders were placed, more than 3.75 times the ultimate book size. In the bank's debt issue history, this orderbook size is the greatest. In addition, the Bank had a historically high spread of 110 basis points due to the amount of interest in the notes.

Strong interest was shown in the offering by a wide range of investor accounts, including banks, insurance firms, private banks, global fund and asset managers, and other organizations. The settlement of the transaction is scheduled for May 14, 2024.
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The Notes are anticipated to obtain an Issue Rating of Baa2 by Moody's when they are issued on the Singapore Exchange (SGX).

Security Bank has mandated MUFG and UBS as Joint Global Coordinators, alongside Standard Chartered Bank and SB Capital as Joint Bookrunners for the transaction.

Security Bank is a private domestic universal bank in the Philippines with total assets of PHP872 billion as of December 31, 2023. The Bank has been operating for 72 years since it was established in 1951. Security Bank has a total of 328 branches and 663 ATMs, Cash Recycler Machines (CRMs) and Cash Acceptance Machines (CAMs).

In 2024, Security Bank was recognized Best for High-Net-Worth in the Philippines by Euromoney. This is the fourth consecutive year Security Bank wins the Euromoney/Asiamoney award (i.e., 2024, 2023, 2022 & 2021). The Bank also won Best Retail Bank in the Philippines by Alpha Southeast Asia for the fourth consecutive year; Best Payment Solution in the Philippines – BIPPS (Billing Invoice Presentment and Payment System) by Alpha Southeast Asia; the 4 Golden Arrow Recognition for corporate governance excellence by the Institute of Corporate Directors (ICD); Best Investor Relations Company (Philippines), Asia’s Best CSR, Asia’s Best CEO (Investor Relations), Asia’s Best CFO (Investor Relations) and Best Investor Relations Professional (Philippines) by Corporate Governance Asia for three consecutive years; Best Small Cap Company, Philippines 2023 – Silver by FinanceAsia; Workplace Wellness Programme Award – Philippines by ESGBusiness Awards (Singapore); and Renewable Energy Financing Programme-Philippines Award – SB Capital by Alpha Southeast Asia. Security Bank ranked in Forbes’s World’s Best Employers in 2023, whereby Security Bank ranked #54 in the world, #2 among Philippine companies, and #1 among Philippine banks. Forbes partnered with market research firm Statista to create Forbes’ seventh annual list of the World’s Best Employers.