By Susanna Moon
Chicago, June 15 - SM Investments Corp. said it upsized its retail bond offering to PHP 10 billion from PHP 5 billion due to strong demand from institutional and retail investors.
The company priced the bonds on June 5 at 8.25% for its series A five-year bonds and at 9.1% for its series B seven-year bonds.
SM Investments said it began selling the bonds to the public beginning June 8. To date, investment commitments are PHP 13 billion, almost three times the bonds' original issue size.
This prompted joint lead underwriters BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp., Union Bank of the Phils. and RCBC Capital Corp. to exercise their oversubscription option for the additional PHP 5 billion bonds, according to a press release.
Participating underwriters for the bonds are United Coconut Planters Bank, Standard Chartered Bank, Land Bank of the Phils., Allied Banking Corp., First Metro Investment Corp., Amalgamated Investment Bancorp., Multinational Investment Bancorp., Vicsal Investment, Inc. and PNB Capital & Investment Corp.
The offer period is scheduled to end Thursday, and the issue date is scheduled for June 25.
The company said on May 29 that it obtained approval from the Securities and Exchange Commission for PHP 5 billion of fixed-rate bonds with an over-allotment option of up to PHP 5 billion.
On April 3, the company's board authorized the sale of up to PHP 10 billion of bonds. The securities have a minimum investment value of PHP 20,000 per transaction.
The proceeds of the bonds will be used for expansion projects and for general corporate purposes.
The Pasay City, the Philippines, holding company has positions in retail and finance.
| Issuer: | SM Investments Corp.
|
| Amount: | PHP 10 billion
|
| Greenshoe: | PHP 5 billion
|
| Issue: | Bonds
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| Underwriters: | BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp., Union Bank of the Phils. and RCBC Capital Corp. (leads); United Coconut Planters Bank, Standard Chartered Bank, Land Bank of the Phils., Allied Banking Corp., First Metro Investment Corp., Amalgamated Investment Bancorp., Multinational Investment Bancorp., Vicsal Investment, Inc. and PNB Capital & Investment Corp. (participating)
|
| Pricing date: | June 5
|
| Settlement date: | June 25
|
| Rating: | Philippine Ratings Services Corp.: A
|
|
|
| Series A bonds
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| Maturity: | Five years
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| Coupon: | 8.25%
|
| Price: | Par
|
| Yield: | 8.25%
|
|
|
| Series B bonds
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| Maturity: | Seven years
|
| Coupon: | 9.1%
|
| Price: | Par
|
| Yield: | 9.1%
|
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