SMC Global’s P20-B bond listing boosts local fixed income market

The listing at the Philippine Dealing & Exchange Corp. (PDEx) by SMC Global Power Holdings Corp. of P20 billion worth of fixed rate bonds helped rev up the domestic fixed income market at a compounded 62 percent yearly over the past nine years.

SMC Global Power yesterday listed P9.9 billion in bonds due in 2022, P6.5 billion due in 2024 and P3.6 billion due in 2027.

The five-year bonds carry an interest rate of 5.375 percent yearly; the seven-year bond, 6.25 percent; and the 10-year bond, 6.625 percent.

Cesar B. Crisol, PDEx chair and chief executive, said during the listing ceremony that the issue was notable for being achieved at such a late time of the year.

“We are also pleased to note that the distribution of this set of bonds… is being dispersed to around 8,000 bondholders, affirming this both as a very public issuance as well as a warm reception by investors in the San Miguel brand,” Crisol said.

The PDEx chair said the listing was also “a delightful way” to cap the year for corporate bond issuances and listings, which he said was the brightest area of activity for the fixed income market in 2017.

“This is listing No. 29 for the year, pushing the total amount of new bonds listed to P207.43 billion, another record level since we started,” Crisol said.

“We shall end 2017 with a total outstanding amount of bonds listed at P792.5 billion, now a long way from the P10 billion when we started in 2008,” he said. “This basically marks an annual compounded growth rate of 62 percent in a nine-year span.”