SMIC hikes retail bond issue to P15B

MANILA, Philippines - SM Investments Corp. (SMIC), the listed investment holding firm of the family of retail tycoon Henry Sy, has upsized its retail bond issue to P15 billion from the initial size of P10 billion due to robust demand from both retail and institutional investors.

SMIC said the bonds, which compromise six percent Series C bonds due 2019 and 6.9442-percent Series D Bonds due 2022, were taken up by a wide spectrum of investors ranging from individuals in the retail market,banks, investment funds, pension funds, insurance companies and other corporates. 

The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option.

The offering commenced on June 27 and closed last July 6.

SMIC’s maiden peso-denominated public bond issue in June 2009, comprised of five-year Series A and seven-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.  

SMIC intends to use proceeds from the issue to partly fund its capital expenditure requirements and for general corporate purposes.

The bond issue was assigned the highest corporate rating of PRS AAA by Philippine Ratings Services Corp. The rating denotes that such obligations are of the highest quality with minimal credit risk, and that the issuing company’s capacity to meet its financial commitment on the obligation is extremely strong.