Conglomerate SM Investments Corp. set at 5.159 percent the interest rate for the planned P15-billion fixed-rate bond offering, according to BDO Capital and Investments Corp., the underwriter handling the deal.
SMIC, which has investments in banking, real estate, shopping malls and retail, plans to issue P15 billion worth of seven-year bonds with an over allotment option for another P5 billion in December.
BDO Capital president Eduardo Francisco said there was a strong demand for the company’s seven-year bonds which could prompt the company to tap the over allotment option, thereby increasing the size of the offering to P20 billion.
“As expected demand is strong and we will see how demand goes during the offer period. We will make recommendations to principals for oversubscription then,” Francisco said.
Offer period for SMIC bonds will be from Nov. 23 to Nov. 29 while issue date was set on Dec. 7. The bonds will be listed with the Philippine Dealing and Exchange Corp.
The P15-billion bond offering plus P5 billion oversubscription option forms part of the company’s P50-billion shelf registration program earlier approved by the Securities and Exchange Commission.
The remaining P30 billion bonds will be placed in shelf for issuance within the next three years.