SM Investments Corp. has increased its retail bond issue to P15 billion from the initial size of P10 billion due to strong demand from both retail and institutional investors. The issue consists of Series C bonds due 2019 and Series D bonds due 2022.
The bonds were purchased by a wide spectrum of investors ranging from individuals in the retail market, to banks, investment funds, pension funds, insurance companies and other corporations. The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option. The offer period for the SM bonds opened on June 27, 2012, and closed on July 6, 2012. The issue date is July 16, 2012.
SM’s maiden peso-denominated public bond issue in June 2009, composed of 5-year Series A and 7-year Series B tranches, was similarly oversubscribed. From an initial offer size of P5 billion, the 2009 issue doubled to P10 billion also on strong demand from both retail and institutional investors.
SM’s bonds are rated PRS Triple A by Philippine Rating Services Corp., the highest rating assigned by PhilRatings. The rating means the obligations are of the highest quality with minimal credit risk, and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.
The SM bonds’ joint issue managers are BDO Capital & Investment Corp. and First Metro Investment Corp., which together also acted as joint lead underwriters with BPI Capital Corp. and China Banking Corp. A group of seven other investment banks acted as participating underwriters for the bond issue.