Security Bank grants add’l P500 M cash dividends

MANILA, Philippines - Security Bank Corp. (SBC) has declared another P500 million in cash dividends to its stockholders, bringing its total cash dole-outs to over P1 billion this year.

In a statement, SBC said its board approved the grant of 50 centavos per share as regular semestral cash dividend and an additional 50 centavos as special cash dividend.

The bank approved in May a total P1 per share cash dividend, also consisting of a 50-centavo regular and special cash dividends.  SBC likewise declared earlier a 20-percent stock dividend to stockholders.

The record and payment date for the cash dividend, however, would be determined after approval by the Bangko Sentral ng Pilipinas (BSP).

The SBC’s board also approved the exercise of the call option on and redemption of the Lower Tier 2 subordinated notes with face value of P3 billion.

The notes were issued on Dec. 10, 2008 with a coupon rate of 8.625 percent and maturity date on Dec. 10, 2018.

As of June 30, 2013, the bank’s capital adequacy ratio (CAR) stood at 18 percent and Tier 1 CAR was at 16.2 percent.

SBC’s board also called for a special stockholders’ meeting on Nov. 26, to seek shareholders’ approval for the creation of one billion preferred shares with a par value of 10 centavos.

The preferred shares will be voting, non-cumulative, non-participating and non-convertible, and will be part of the bank’s capital-building program to  provide incremental equity and improve the trading dynamics of its common stockholders.

The bank plans to issue 602.83 million preferred shares to holders of common stock through a one-for-one rights offering, after the distribution of the 20 percent common stock dividend this year.

Upon receipt of regulatory approvals, the preferred shares will be offered to eligible common stock holders, with each eligible stockholder entitled to subscribe to one voting preferred share for every one common stock held as of the record date. The record date will be determined after the receipt of regulatory approvals.

The timetable for the issuance of the preferred shares will be dependent on the approval of the BSP and the Securities and Exchange Commission.