SMIC begins P15-B retail bond sale
The country’s largest conglomerate, SM Investments Corp. (SMIC), launched on Monday a new retail bond offering worth up to P15 billion as it prepares for expansion while riding on the recovering domestic economy.
SMIC priced the three- and five-year bond offerings to yield 3.5915 percent and 4.7713 percent per annum, respectively, the Sy family-led business house disclosed to the Philippine Stock Exchange on Monday at the start of the offering.
The public offering of the bonds due 2025 (series I) and 2027 (series J) will run until Feb. 11. The securities will be issued on Feb. 18.
The base offer is P10 billion but there is an option to upsize by P5 billion more.
This offering forms the second tranche of SMIC’s P30-billion debt securities shelf registration with the Securities and Exchange Commission.
Net proceeds will be used to refinance its existing debt obligations and for general corporate purposes.
The bonds will be issued in scripless form in minimum denominations of P20,000 each, and in multiples of P10,000 thereafter, and traded in denominations of P10,000 in the secondary market.
SMIC has mandated affiliate investment houses BDO Capital & Investment Corp. and Chinabank Capital as joint issue managers, book runners and lead underwriters for the offering.
BPI Capital, Eastwest, First Metro Investment Corp., RCBC Capital Corp. and SB Capital were also mandated as joint book runners and lead underwriters.
The bonds are rated “PRS Aaa,” the highest rating given by local debt watchdog Philippine Rating Services Corp., with a “stable” outlook.
Obligations rated “PRS Aaa” are deemed to be “of the highest quality with minimal credit risk.” A stable outlook, meanwhile, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
