Conglomerate SM Investments Corp. on Friday listed P15 billion worth of fixed-rate bonds at Philippine Dealing and Exchange Corp. after a strong demand from investors.
SMIC said in a disclosure to the stock exchange the bond offering was 3.7 times over-subscribed, with demand reaching P55 billion, signifying investors’ confidence in the group’s credit standing. The P15-billion offering is SM Investments’ biggest issue since 2016.
“We are pleased with the response to our bond issue. 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,” SMIC president and chief executive Frederic 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,” DyBuncio said.
The offer size was P10 billion with an option to increase by up to P5 billion. The company set the interest rates for the Series I three-year retail bond at 3.5915 percent due 2025, and Series J, five-year retail bond at 4.7713 percent due 2027.
.jpg){kind=small}
