Lender Security Bank launched on Tuesday a new P5 billion local bond offering, locking in longer term funding now that local interest rates have significantly gone down.

The bonds will have a tenor of two years and will carry a fixed rate of 3.125 percent per annum, Security Bank disclosed to the Philippine Stock Exchange on Tuesday.

The offering may be upsized depending on demand.

The public offer period will run from June 23 to July 15 this year. Minimum denominations have been set for one million pesos and increments of P100,000 thereafter.

Security Bank will list the bonds on the Philippine Dealing and Exchange Corp. on July 24, to provide secondary market liquidity to investors who would like to trade the instruments.

The bonds will be issued out of the bank’s P100-billion bond and commercial paper program that was initially established in December 2018. The program started with a total amount of P50 billion and had been subsequently doubled as approved by the bank’s board of directors.

Security Bank has mandated Philippine Commercial Capital Inc. (PCCI) as sole bookrunner, and PCCI and SB Capital Investment Corp. as joint lead arrangers and selling agents for this issuance.

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