SM Investments Corporation increased its retail bond issue to P15 billion from P10 billion due to strong demand from retail and institutional investors, the company said in a disclosure Monday.
 
The bond issue consist of 6 percent series C bonds due 2019 and 6.9442% Series D Bonds due 2022, SM Investments noted in a disclosure to the Philippine Stock Exchange Monday.
 
The bonds were purchased by investors from retail markets and banks, investment funds, pension funds, insurance companies and other corporates, according to the disclosure.
 
“The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option,” SM Investments said.
 
In June 2009, SM Investments’ maiden peso-dominated public bond issue–divided into 5-year Series A and 7-year Series B tranches–were also oversubscribed. This prompted the company to increase its offer to P10 billion from P5 billion.
 
Given the highest rating–Triple A, by the Philippine Ratings Services Corporation–the bonds “are of the highest quality with minimal credit risk, and extremely strong financial commitment from SM to meet its obligations," SM Investments said in a disclosure last June.
 
The bonds in scripless or electronic form are denominated in lots of P20,000, and–thereafter–P10,000.
 
“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 Investments said in the previous disclosure. 
 
SM Investments hired BDO Capital & Investment Corporation, BPI Capital Corporation, China Banking Corporation, and First Metro Investment Corporation as joint underwriters for the retail bonds.
 
The offer period for SM bonds opened on June 27 and closed on July 6, while the issue date will be on July 16, 2012.  — MJC/VS, GMA News