The listing will allow bondholders to freely trade their bonds through accredited brokers between the listing date and the maturity of the bonds.
The bonds to be listed are the P10 billion worth of fixed-rate series A bonds due 2014 and series B bonds due 2016. SMIC will also list on PDEX the recently issued P15 billion worth of fixed-rate series C bonds due 2019 and series D bonds due 2022.
“We are glad to have a venue by which we can provide increased flexibility to our bondholders, while also giving greater access to retail investors of SM Bonds. I would also like to take this opportunity to thank all those who supported our recent bond offer,” SMIC executive vice president and chief financial officer Jose Sio said in a press statement.
The P15 billion latest bond offer of SM, which closed last July 6, was upsized from the initial offer of P10 billion to P15 billion due to the strong demand from both retail and institutional investors.
The proceeds of the bond issue will be used to finance medium-term projects of SMIC in the hotel and commercial properties business.
SMIC is also continuing its expansion of the malls in provincial areas and in China under its mall subsidiary SM Prime Holdings Inc. while the residential business will be launching four to five new projects each year under its residential arm SM Development Corp.
Recently, the group also subscribed to its proportionate shares in BDO’s landmark rights offer worth $1 billion to enhance the bank’s core capital and prepare for larger infrastructure funding.