SMIC returns to offshore debt market

Conglomerate SM Investments Corp. is returning to the overseas debt market after two years with an offering of 10-year US dollar-denominated bonds.

In a disclosure to the Philippine Stock Exchange on Tuesday, SMIC said its board had approved the proposed bond foray and that Citi and Standard Chartered Bank were mandated as joint lead managers and joint bookrunners.

“The offering is intended to be used for general corporate purposes, including refinancing of existing debts,” the disclosure said.

The board also authorized the SMIC management to negotiate with Citi and Standard Chartered Bank and finalize the amount, terms and pricing of the bond issue subject to the prevailing market conditions.

IFR, a Thomson Reuters unit, reported that SMIC had issued a price guidance for the 10-year offering at a yield of 5.125 percent per annum.

The last time SMIC tapped the international bond market was in 2012 when it issued $500 million in seven-year bonds at a coupon rate of 4.25 percent per annum. Doris C. Dumlao