The Securities and Exchange Commission (SEC) has approved the P30-billion bond registration of SM Investments Corp.
In its meeting on September 15, the Commission En Banc resolved to render effective the registration statement of SM Investments for debt securities to be issued in tranches within three years once the company complies with certain remaining requirements.
“SM Investments will initially offer fixed-rate bonds in the aggregate principal amount of P5 billion, with an oversubscription option for up to P5 billion. The net proceeds from the offer – estimated at P9,886,821,875.00 – will refinance existing debt obligations of the publicly listed company,” the SEC noted.
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, and traded in denominations of P10,000 on Philippine Dealing & Exchange Corp.
The first tranche 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.
SM Investments earlier said local credit rater Philippine Ratings Services Corp. (PhilRatings) assigned a rating of PRS Aaa for the initial P10 billion that will be raised immediately.