SM Investments Corp. is looking to raise P15 billion through a bond sale, the proceeds of which will be used to pay maturing obligations.
Regulatory filing showed SM Investments is looking to issue an initial P10 billion and another P5 billion, covering the oversubscription option.
The offer comprises the second tranche of the listed company’s P30 billion debt securities under shelf registration.
SM Investments said it will use the proceeds pay obligations from Mizuho Bank Ltd. amounting to P2.96 billion, due March 2022; HongKong Shanghai Banking Corp., P2.55 billion, due May 4, 2022; Seried D bonds, P7.68 billion, due July 16, 2022; and BDO Unibank Inc., P2.5 billion, due May 25, 2022.
SM Investments said any shortfall from the proceeds will be funded by internally generated cash flows or from credit facilities.
Tapped as issue managers are BDO Capital & Investment Corp. and China Bank Capital Corp. (ChinaBank Capital), with BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as joint bookrunners and joint lead underwriters together with BDO Capital and ChinaBank Capital.
