SM Investments Corp (SMIC) is finalizing its P15-billion bond offering after securing approval from the Securities and Exchange Commission last week to proceed with the issue.
The listed holding firm said proceeds of the bond issue will be used to refinance existing debt and bankroll its expansion.
“Proceeds of the bonds shall be utilized by SM to refinance existing debt, including its Series A retail bonds due June 2014, to finance retention payments for the completed construction of a commercial building at the SM Arena – Mall of Asia Complex, and to finance the construction of a warehouse building on its Asinan property in Parañaque City,” SMIC told the bourse in a filing on Monday.
For the peso-denominated Series E seven-year retail bonds, the group set the interest rate at 5.2958 percent per annum , while for the Series F 10-year retail bonds, SMIC set the rate at 5.6125 percent per annum.
The conglomerate will issue an aggregate principal amount of P10 billion of the Series E and Series F bonds, with an option to issue an additional amount of up to P5 billion. The offer period for underwriters is from April 30 to May 12, 2014. The bonds are set to be issued to the public on May 19, 2014.
The bond issue manager is BDO Capital & Investment Corp., which is also acting as joint lead underwriter together with BPI Capital Corp., China Banking Corp., and First Metro Investment Corp.