SMIC sets early redemption of $250-M bonds

MANILA, Philippines - SM Investments Corp. (SMIC), the investment holding vehicle of the Sy family, will buy back $250 million worth of its bonds two years ahead of maturity.

In a filing to the local bourse yesterday, the mall, banking and property conglomerate said it intends to conduct an early redemption of its $250 million,1.625 percent convertible bonds due 2017.

“The company intends to redeem all, and not some only, of the bonds remaining outstanding as on April 19, 2015 (the redemption date) at a redemption price equal to approximately 104.127 percent of the principal amount of all outstanding bonds plus accrued and unpaid interest on the bonds calculated from and including Feb. 15, 2015 to, but excluding the redemption date,” SMIC said.

The bonds are listed on the Singapore Stock Exchange. SMIC said it intends to complete all formalities in relation to the delisting of the bonds as soon as possible following the redemption of the bonds on April 19.

SMIC in 2014 posted record earnings of P28.4 billion, up 3.6 percent from 2013’s P27.4 billion.

The company’s consolidated revenues also jumped nine percent to P275.7 billion in 2014 from P253.3 billion the previous year.

SMIC is one of the country’s largest conglomerates with interest in banking, shopping malls, real estate, tourism and retail sectors.