SM raises $500M from offshore bond foray

Posted on October 11, 2012

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MANILA—SM Investments Corp. has raised $500 million from the sale of overseas bonds at one of the cheapest rates seen by a Philippine corporate issuer for a seven-year tenor.

SMIC announced on Thursday that it had priced the seven-year bond issue to yield a fixed rate of 4.25 percent per annum.

The issue was “substantially oversubscribed,” attracting subscriptions totaling $3.1 billion from institutional and private banking investors within the Philippines and across Asia and Europe, allowing SMIC to upsize the issue from the initial indicative size of $200 million.

The bond issue is a debt management exercise which will further lengthen SMIC’s debt profile and take advantage of the much improved interest rate environment.

In a statement, SMIC executive vice president and chief finance officer Jose Sio thanked investors for their support. “This exercise is also our way of maintaining our presence in the bond market and fostering a sustainable relationship with the international investment community,” he said.

Citi, Deutsche Bank and J.P. Morgan acted as joint lead managers and joint bookrunners for the transaction.

The SM conglomerate, through various subsidiaries, is the dominant player in Philippine banking, shopping mall and retailing businesses as well as a fast-growing player in residential condominium and hotel/convention center development./Inquirer

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