SM Investments launches 10-yr. US dollar bonds

(Updated 4:04 p.m.) Sy-led SM Investments Corp. on Tuesday said it is tapping the international debt market to raise capital and refinance debt, taking advantage of prevailing rates.

 

"The US dollar bond issue has just been launched by SMIC. The details and terms of the bond will be finalized at closing of the bond offering," CFO Jose Sio told GMA News Online in a text message.

The price guidance for the 10-year US dollar bond offering is at a yield of 5.125 percent but pricing could be done on Tuesday, according to Reuters, citing a report by Thomson Reuters unit IFR.

 

The board of SM Investments approved the issuance of US dollar bonds with maturity of up to 10 years, the company said in a separate disclosure to the Philippine Stock Exchange.

 

It hired Citi and Standard Chartered Bank as joint lead managers and joint bookrunners.

 

Proceeds of the offering will be used for general corporate purposes and refinancing of existing debts.

 

SM Investments, the holding company of businessman Henry Sy, has set a capital expenditure of P80 billion this year, the bulk of which will be allotted to its property business. – VS, GMA News