Low interest rates lure more firms to bond market

MANILA, Philippines — Companies are taking advantage of thecurrent low interest rate environment.

In a disclosure to the Philippine Stock Exchange (PSE), Sy-owned SM Investments Corp. said it has enrolled its P5.6 billion fixed rate 2022 notes with the Philippine Dealing and Exchange Corp., the country’s fixed income exchange.

The 18-month notes were priced at a yield of 2.875 per annum and will mature on Jan. 22, 2022.

The company has businesses in retail, banking and property and has ventures that capture high growth opportunities in the emerging Philippine economy.

Andrew Tan-led Megaworld Corp. likewise announced it has appointed banks to arrange calls with investors.

An offering of dollar-denominated notes may follow, Megaworld said.

Proceeds of the offering will be used for general corporate purposes, which include, among others, financing capital expenditure, land banking and refinancing of loans.

DoubleDragon, Properties Corp. of Edgar “Injap” Sia II, through subsidiary DDPC Worldwide Pte. Ltd., is also issuing $75 million worth of 2025 bonds.

The bonds will be listed on the Singapore Exchange Securities Trading Ltd.

Proceeds of the new five-year offer will significantly increase the cash position of the company.