SBC hikes capital to P10 B

MANILA, Philippines - Security Bank Corp. (SBC) has secured the approval of the Bangko Sentral ng Pilipinas to raise its authorized capital to P10 billion from P6 billion.

In a disclosure to the Philippine Stock Exchange, SBC said the BSP also approved the amendments in the bank’s articles of incorporation which will pave the way for the issuance of one billion common shares with a par value of P10 each.

“Upon the approval of the SEC of the amendment of the articles of incorporation authorizing the increase in capitalization, the bank can implement the payment of the 20 percent stock dividend (as approved by the BSP last July 11, 2013) with the setting of the record and payment dates,” SBC said.

The board of SBC gave its go-signal last month for the declaration of a regular semestral cash dividend of 50 centavos per share and a special cash dividend of 50 centavos per share on the outstanding capital stock of the bank for a total cash dividend of P1 per share for the semester.

This will bring the total cash dividend for the year to P2 per share.

The bank’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 coupon rate of 8.625 percent and maturity date on Dec. 10, 2018.