SEC clears SMIC’s P30 billion bond offer

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the shelf registration of SM Investments Corp. (SMIC) for P30 billion worth of fixed rate bonds.

Of the amount, SMIC will initially offer up to P10 billion to refinance existing obligations.

The first tranche will comprise 3.5-year Series H bonds due in 2024 to be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter.

Net proceeds from the offer, estimated at P9.8 billion, will refinance existing debt obligations of the publicly listed company.

The first tranche of bonds will be offered to the public at face value through BDO Capital & Investment Corp., China Bank Capital, BPI Capital Corp., First Metro Investment Corp. and SB Capital as joint lead underwriters.

Philippine Ratings Services Corp. (PhilRatings) has assigned a rating of PRS Aaa to the initial tranche.

PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.

SMIC reported a consolidated net income of P7.1 billion in the first half of the year, down 69 percent as some of its businesses were hit by the impact of the COVID-19 pandemic.

On the other hand, consolidated revenue declined 21 percent to P185.5 billion.

SMIC’s businesses are retail through the SM Group, banking through BDO and Chinabank and property through SM Prime Holdings. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.