SM Investments Corp. on Monday pegged the price of its P15-billion retail bond offering, whose proceeds will refinance long-term debt and maturing bonds and fund general corporate activities.
SMIC said in a disclosure to the stock exchange the three-year series I retail bond will carry an interest rate of 3.5915 percent due 2025, while the Series J, five-year retail bond will have an interest rate of 4.7713 percent due 2027.
The bonds will be offered to investors through underwriters from Feb. 7 to 11 and will be listed on the Philippine Dealing & Exchange Corp.
The conglomerate will issue an aggregate principal amount of P10 billion, with an oversubscription option for another P5 billion. The bonds will be issued from the company’s P30-billion debt securities program approved by the Securities and Exchange Commission in 2020.
BDO Capital and Investments Corp., China Bank Capital, BPI Capital Corp., East West Banking Corp., First Metro Investments Corp., RCBC Capital Corp. and SB Capital are the joint lead underwriters for the offering.
The bond offering was assigned the highest credit rating of PRS Aaa, with a stable outlook by Philippine Rating Services Corp.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. It means the company’s capacity to meet its financial commitment on the obligation is extremely strong.
Meanwhile, a stable outlook indicates that the ratings are likely to be maintained or to remain unchanged in the next twelve months.
SMIC is one of the Philippines’ largest conglomerates, with core businesses in retail, property and banking. It also invests in ventures with high-growth opportunities in the domestic economy.
The conglomerate reported a net income of P27.2 billion in the first three quarters of 2021, up 72 percent from the same period in 2020.
Nine-month consolidated revenues grew 5 percent to P289.4 billion from a year earlier.
The share price of SMIC fell 2.7 percent Monday to close at P950.