Philippines’ SM Investments lists P15B bonds

The bond offering was 3.7 times oversubscribed.

SM Investments Corporation listed P15b worth fixed rate bonds at the Philippine Dealing and Exchange Corp., which was oversubscribed my 3.7 times.

“The hefty investor appetite for these securities was on the back of volatility around local interest rate sentiment with expectations of the US Federal Reserve hiking rates,” SM Investments President and Chief Executive Officer Frederic C. DyBuncio said.

“This exercise mirrors investor confidence on SM’s credit quality and overall prospects for growth while increasing our funding flexibility and enhancing capital efficiency.”

SM Investments also noted this is the biggest retail bond offering the company has issued since 2016.

The offer size was P10b with an option to increase by up to P5b. The company set the interest rates for the Second Tranche Bonds Series I, 3-year retail bond at 3.5915% due on 2025, and Series J, 5-year retail bond at 4.7713% due on 2027.

The offering forms part of SM Investments’ second tranche of PHP30 billion in debt securities registered with the SEC under a shelf registration.

The net proceeds of the bond issue will be used to refinance debt that funded capital expenditure.

SM Investments is a Philippine-based company that invests in retail, banking and property.