SM offers P10B worth of AAA bonds

SM Investments Corporation is offering triple A-rated retail bonds worth P10 billion, according to SM’s Wednesday disclosure in the Philippine Stock Exchange. The disclosure added that SM has an option to add P5 billion value on the retail bond. The holding company of the SM group said their fixed-rate retail bonds are classified in two tranches: Series C with a seven-year maturity and six percent coupon rate, and Series D with a 10-year maturity and a 6.9442% coupon rate. Given the highest rating, triple A, by the Philippine Ratings Services Corporation, the SM bonds “are of the highest quality with minimal credit risk, and extremely strong financial commitment from SM to meet its obligations," SM said in their disclosure. The bonds in scripless or electronic form are denominated at a minimum P20,000 each, and P10,000 thereafter. “The proceeds of the issue will be used by SM to partially finance its capital expenditure requirements for the next five years and for general corporate purposes," SM added in their disclosure. SM has organized BDO Capital & Investment Corporation, BPI Capital Corporation, China Banking Corporation, and First Metro Investment Corporation as their joint underwriters to distribute the bonds. — Marc Jayson Cayabyab/DVM, GMA News