Wednesday, 17 June 2009

Philippines' SMIC doubles bond issue to P10 billion

Manila Bulletin

SM Investments Corporation announced Monday that it upsized its retail bond issue to P10 billion from the initial issue size of P5 billion due to strong demand from both institutional and retail investors.

Last June 5, SMIC set the interest rates for its Series A, 5-years and 1 day bonds at 8.25 percent per annum, and for its Series B, 7-year bonds at 9.10 percent p.a. The bonds were made available for sale to the investing public beginning June 8.

SMIC disclosed to the Philippine Stock Exchange that, to date, investment commitments totaled P13 billion, almost 3 times the bonds’ original issue size.

This has prompted the bonds joint lead underwriters to exercise their oversubscription option for the additional P5 billion bonds.

The retail bond is SMIC’s maiden foray into the domestic public debt market. The bond is rated triple “A” by the Philippine Ratings Services Corporatin (PhilRatings), the highest credit rating on PhilRatings long-term credit rating scale.

“We are extremely pleased and grateful that investors have responded positively to the SMIC bond issue,” SMIC Executive Vice President and Chief Finance Officer Jose T. Sio.

The bonds offer period is scheduled to end June 18, while issue date is scheduled for June 25.

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