Security Bank offers long-term negotiable certificates of deposit
SECURITY Bank Corp. launched its second tranche of long-term negotiable certificates of deposit (CDs) on April 10, in line with the Bangko Sentral ng Pilipinas’ approval to issue CDs as embodied in Monetary Board Resolution No. 1704 dated Oct. 5.
Security Bank is offering the CDs to better manage its liabilities and ratios, while expanding its funding and investor base. CDs have been an effective way for banks to raise cost-effective funding, while offering a new investment product to their own depositor base, most of whom are looking for long term assets that provide higher yields than traditional time deposits.
HSBC and Standard Chartered Bank were mandated as joint lead arrangers and bookrunners, and also act as selling agents together with Security Bank and Multinational Investment Bancorporation.
Security Bank will list the CDs at the Philippine Dealing and Exchange Corporation, to provide secondary market liquidity to investors who would like to trade the instruments. (PR)