SECURITY BANK PRODUCTS AND SERVICES

PRODUCTS:
Unit Investment Trust Fund

A UITF (or Unit Investment Trust Fund) is an open-ended trust fund denominated in pesos or
any acceptable currency, which is operated and administered by a trust entity. Each UITF Fund
is governed by a Declaration of Trust (or Plan Rules) which contains the mechanics for investing,
operating, and administering the find. The funds are then invested by a team ion professional
portfolio managers in various other deposits and securities. Individuals and institutions take
part in the UITF by purchasing units of participation in the fund.

Investment Management Account

Investment Management Account refers to the management of assets of individual and

corporate clients. The assets, together with all the income generated, will be returned to the
client as instructed.

SBC – Trust, as Investment Manager designs and implements investment strategies suited to
client’s specific requirements.

Disposition of funds may be subject to full or limited discretion of the Bank.

These are two (2) types of Investment Management Accounts (IMA):

Regular IMA: SBC – Trust is given full discretionary authority in the management of your funds.
Minimum requirement is PHP100,000,000.

Directional IMA (DIMA): You can specify terms and conditions and direct SBC – Trust on where
to invest funds. Minimum Requirement is PHP1,000,000.

Retirement of Provident Fund Management

Retirement Fund is an employee retirement plan set up by a company to fund the

retirement/separation benefit payments of its qualified employees at a future date. It can be
set up using either or a combination of the following plans:
Fixed Benefit Plan – benefits received by the employee are defined based on the length of stay
with the company & his current salary.

Contributory Plan – benefits received by the employee consist of contributions made by both
the employer & the employee plus earnings earned from these contributions to the fund.

Corporate Trust Fund

Place your trust in SBC by opening a corporate trust fund. Here, SBC’s Trust Department is
appointed as Trustee for the primary purpose of administering, handling, managing and
investing funds and assets entrusted to it.

SERVICES:

Treasury Services
Government Securities and Peso Corporate Bonds

Steady growth for your hard-earned money, government securities and peso corporate bonds
are low-risk investments that let you earn fixed interests. Security Bank has many investment
has many investment options for you to choose from:

 Treasury Bills (T-bills)

 Retail Treasury Notes (RTBs)
 Fixed Rate Treasury Notes (FXTNs)
 Corporate Bonds

US Dollar Bonds

Diversify your portfolio and invest in US Dollar bonds with our 2 investment options:

 Sovereign bonds
 Corporate bonds

Foreign Exchange Services

Avail our quick and reliable foreign exchange services to handle all of your currency needs.

 Spot-The simplest and most common foreign exchange transaction. It is the sale or
purchase of foreign currency for settlement within 2 banking days.
  Foreign Currency Notes-Notes from various foreign currencies are available through
branch network. *Please coordinate with relevant branch to ensure notes are available.
 Third Currency Demand Draft (Selected)-Worldlink Demand Drafts are as good as cash
hence, more acceptable than personal or corporate checks. Also, Worldlink Demand
Draft may be replaced/refunded and stopped payment if lost subject to certain
requirements.

Hedging and Derivatives

Enjoy stability with your funds, with our various derivative options.

Foreign Exchange Derivatives

 FX Forward Contract– A financial contract which locks in the foreign exchange rate
today for settlement at a future date. This product enables clients (e.g, exporters,
importers, investors and companies) to eliminate FX volatility by fixing the exchange
rate.
 FX Swap Contract-A financial contract which involves exchanging a set of currencies
today for settlement with the agreement to re-exchange the same set of currencies at a
future date. This product gives clients flexibility in managing their foreign exchange cash
flows without the unwanted FX risk.
 FX Options Contract– Gives the client the benefit of eliminating unwanted foreign
exchange risk while allowing some flexibility to benefit from every favourable
movements in the foreign exchange rate.

Interest Rate Derivatives

 Forward Rate Agreement (FRA)– An over the counter contract to borrow or lend at a
specific future date at an interest rate that is fixed today.
 Interest Rate Swap (IRS)– Is a financial transaction wherein one party agrees to pay a
series of FIXED rate interest payments in exchange for receiving a series of FLOATING
rate interest payments over a period of time (eg. 1 to 10 years). This product will enable
a client to transform his floating rate obligations into fixed rate obligations, and vice
versa, without the need to refinance the original liability.
 Cross-currency Swap (CCS)– Is a financial transaction wherein one party agrees to pay a
series of FIXED rate interest payments denominated in one currency, say Currency A, in
exchange for receiving a series of FLOATING rate interest payments denominated in
another currency, say Currency B, over a period of time (e.g, 1 to 10 years). This product
can enable a client to transform his floating rate obligations in Currency A into fixed rate
obligations in Currency B.
  Bond Option Contract– Gives the client the benefit of eliminating unwanted price risk in
bond investments while allowing some flexibility to benefit from every favourable
movements in bond prices caused by changes in interest rates.

INVESTMENT BANKING
Corporate Finance

We offer advisory and consulting services on:

 Project Finance
 Equity and Debt Underwriting and Syndication

Brokerage Services

Enjoy various consulting and brokerage services from our trusted SBC subsidiaries:

 SB Capital Investment Corporation– One of the country’s best in investment banking for
institutions
 SB Equities, Inc– One of the leading stock brokerage houses in the Philippines
 SB Forex, Inc– provides foreign exchange dealership and brokerage services to handle
the currency needs of individuals and institutions

SB Capital Investment Corporation (“SB Capital”)

 is the wholly-owned investment banking arm of Security Bank Corporation, providing a
wide range of capital markets products and investment banking services that address
the diverse financial needs of corporate and public sector clients. Throughout the years,
SB Capital’s engagements have strengthened its strategic alliances with leading local and
international financial institutions, carving out a niche for the company in major growth
sectors such as power, energy, healthcare, property, manufacturing, microfinance, and
services.
 SB Capital offers services that include equity underwriting, debt underwriting and
syndication, financial advisory/mergers & acquisitions, private placements, project
finance structuring, and stock brokering through its subsidiary, SB Equities, Inc.