GSIS Raises Stake in Security Bank

Government Service Insurance System (GSIS) has increased its stake in Security Bank to more than 5%. In their disclosure to the Philippine Stock Exchange, Security Bank has stated that GSIS now owns 38.15 million common shares which are equal to 5.06%.

GSIS president and general manager Jose Arnulfo Veloso have the sole power to either direct the voting or to vote.

In the last two months, the GSIS was able to obtain additional 9.74 million shares from September 16 to November 16 via the Philippine Stock Exchange (PSE).

Social Security System (SSS), another pension fund manager, also owns a 2.65% stake or 20 million shares in Security Bank.

Security Bank has outstanding common shares of 753.54 million. Previously the bank was able to garner ₱16 billion from its investors.

Security Bank executive vice president and financial markets segment head, Raul Pedro has mentioned that the successful issuance and oversubscription is proof of investor confidence in Security Bank and their commitment to giving” BetterBanking” services to their customers.

Originally, the bank predicted gathering ₱1 billion with the issuance of 1.5-year peso bonds with a fixed rate of 3.7407%.

With the increased demand for bonds, Security Bank utilized their oversubscription alternative and accepted offers above the ₱1 billion issue size.

The proceeds from the fundraising initiatives will be allocated for the expansion of the funding base as well as for supporting the lending activities of the Security Bank.

Security Bank is the 10th biggest lender in the Philippines with ₱724.83 billion in terms of assets and the 6th largest with ₱122.45 billion worth of capital.

Source: Philstar