Investors swamp P15-B bonds of SMC power arm

MANILA, Philippines - Investors swamped the P15-billion bond offer of SMC Global Power Holdings Corp.

 “It’s at least three times oversubscribed,” said Ed Francisco, president of BDO Capital and Investment Corp.

SMC will list the bonds today at the Philippine Dealing System.

Francisco said investors swamped the deal because of its attractive rates. “SMC is relatively generous when they price their deals,” Francisco said.

Proceeds of SMC’s bonds would be used to finance a short-term loan extended by BDO Unibank Inc. for the redemption of $300 million corporate notes maturing this year.

The company received a PRS Aaa rating from the Philippine Rating Services Corp. (PhilRatings), the highest rating given by the debt watcher, which indicates minimal credit risk and the issuer’s extremely strong capacity to meet its obligations.

SMC’s bond listing is the second listing under the new administration after Ayala Corp’s P10 billion issue.

The Philippine Dealing and Exchange Corp (PDex) expects P35 billion in issuances this month alone from three issuers – Ayala Corp., SMC Global Power and SM Prime Holdings.

SMPH will be the third issuer with P10 billion 2026 bonds. The target listing date is on July 25.

Cesar Crisol, PDex chairman said the expected listings for the month of July totaling P35 billion is an auspicious beginning under the new administration and a definite sign of the positive outlook of corporate sector of the “changes” now happening.

He also welcomed Ayala’s listing, the first under the new administration.