SMIC launches P10-B bond offer

MANILA, Philippines—SM Investments Corp. launched on Wednesday an offering of P10 billion worth of retail bonds, proceeds from which are meant for the expansion of the office and hotel property businesses.

In a press statement, SMIC said the offering of 7- and 10-year bonds, which can be upsized to P15 billion, would run until July 6 this year.

The launch came after the conglomerate obtained final approval from the Philippine Securities and Exchange Commission.

The fixed-rate bonds are being issued in two tranches: Series C has a maturity of seven years and a coupon rate of 6 percent while Series D will mature in 10 years and carries a coupon rate of 6.9442 percent.

The bonds shall be issued in scripless form in minimum denominations of P20,000.00 each, and in multiples of P10,000.00 thereafter.

The SMIC bonds carry a triple-A rating from local credit watcher Philippine Ratings Services Corp.. This rating denotes that such obligations are deemed of the highest quality with minimal credit risk while financial commitment to meet obligations is extremely strong.

SMIC has organized a group of 11  underwriters to distribute the bonds. Joint lead underwriters are BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp. and First Metro Investment Corp.

The last time that SMIC tapped the local bond market was in 2009 when it issued P10 billion in bonds.

SMIC, founded by the country’s wealthiest man Henry Sy, is the country’s dominant player in retailing, banking (through Banco de Oro Unibank and China Bank) and shopping mall development (SM Prime Holdings Inc.). It is also a fast-growing player in the residential segment (SM Development Corp.) as well as in hotels, leisure estate and convention segment. It also has a minority stake in mining firm Atlas Consolidated Mining & Development Corp.