WRITTEN ANALYSIS ON

FINANCIAL ISSUE

SUBMITTED TO:
Mr. Benedict Jan Baloncio

SUBMITTED BY:
Absin, Stephanie Marie
Lim. Honey Khaiza L.
Lungay, Kareen Jane N.
Quienes , Sheene Dale
Veto ,Julia Nicole L.

FINM8 E
January 29, 2015

Article
Finance
Posted on January 28, 2015 09:19:00 PM
By Daryll Edisonn D. Saclag, Reporter

Security Bank raises $300M via dollar notes

SECURITY Bank Corp. has raised double the initial amount it sought from the issuance of
dollar-denominated notes last Tuesday, proceeds of which will be used for debt management
and foreign currency funding expansion.
In a disclosure to the Philippine Stock Exchange yesterday, Security Bank said the offer announced on
Tuesday -- the lenders first foray into the international debt market -- yielded $300 million
(approximately P13.230 billion), twice the $150 million it initially said it expected to generate.
The five-year senior unsecured notes, which were assigned a BB+ bond rating by Standard & Poors,
were priced at par with a yield of 3.95%, lower than the 4.2% price guidance it had offered on
Tuesday.
Australia and New Zealand Banking Group, Deutsche Bank and UBS AG were tapped as joint
bookrunners for the deal, while the Development Bank of the Philippines and SB Capital Investment
Corp. acted as domestic lead arrangers.
The dollar notes will mature on Feb. 3, 2020 and will be listed on the Singapore Exchange Securities
Trading Ltd. The issue and closing date will be on Tuesday next week.
The senior notes received strong investor demand. The final orderbook was oversubscribed by 5.8
times across 178 accounts, amounting to $1.75 billion, the disclosure read.
Bulk of the securities (58%) were sold to investors in the Philippines, while 35% went to investors
elsewhere in Asia and 7% in Europe.
In terms of investor type, most of the demand (50%) came from banks, while 38% came from fund
managers.
We thank our investors for their overwhelming support as Security Bank, backed by its solid credit
profile, continues to proactively support clients and the Philippine economy in this exciting era of
growth, Security Bank President and Chief Executive Officer Alberto S. Villarosa was quoted as saying
in the disclosure.
Security Banks earnings in the first nine months of 2014 rose by more than half from the same period
the year previous on the back of strong growth in its core lending business.
The bank said in its unaudited financial report that it recorded a net income of P6.428 billion in the
nine months ending September 2014, up 54% year on year.
It attributed the increase in its earnings for the period to solid results from its core businesses.
Earlier this month, Security Bank said it bagged regulatory approval to cross-sell insurance products of

FWD Life Insurance Corp. as part of its efforts to boost its retail operations.
Shares in the bank added 40 centavos to close at P149.40 apiece yesterda

I.

TITLE OF THE ARTICLE

Security Bank raises $300M via Dollar Notes

II.

FACTS OF THE CASE

Security Bank said the offer announced on Tuesday -- the lenders first foray into

the international debt market -- yielded $300 million

The dollar notes will mature on Feb. 3, 2020 and will be listed on the Singapore
Exchange Securities Trading Ltd.
Bulk of the securities (58%) were sold to investors in the Philippines, while 35%
went to investors elsewhere in Asia and 7% in Europe.
ecurity Banks earnings in the first nine months of 2014 rose by more than half
from the same period the year previous

III.

RELATED TOPICS

IV.

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Rules set for lenders expansion of services
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ANALYSIS/CONCLUSION AND RECOMMENDATION

The purpose of security bank in issuing notes is to finance
their debt
and for foreign currency expansion. The bank is boosting its
operations and to be able to finance their new systems they issue
notes .Having this move will create a strong or solid profile for the
bank. It would entice more investors to trust security bank even
more than they usually do. As the last data shows for their earning
the banks earnings has seen a growth. It is also good to know that
the bulk of the securities issued were to investors in the country it
means that people are now knowledgeable of the investment world
and also they have enough money that they could investment in
good investment banks and to other products which would give
higher returns to them in the future.