SM Investments Corp. is raising as much as P15 billion from a retail bond offering, returning to the local bond market after its last issuance two years ago.
SMIC said its board of directors has approved the issuance of fixed-rate peso retail bonds worth P10 billion with an option to upsize by another P5 billion.
The bonds will be offered in one or two tranches with tenors of seven and 10 years.
SMIC has appointed BDO Capital and Investment Corp. as issue manager for the offering.
“The proceeds of the bonds will be used to refinance maturing debt and for various expansion projects,” the company said.
The board also authorized the management to negotiate and finalize the terms and conditions, including pricing, tenor and any increase in issuance amount as well as execute any and all documents necessary, to implement the retail bond issue.
The last time SMIC tapped the local bond market was in 2012, when it issued fixed-rate bonds in two tranches, of which the seven-year tenor carried a coupon rate of 6 percent and the 10-year tenor had a coupon rate of 6.9442 percent. Doris C. Dumlao