SM Investments Corporation returns to the local debt marketPosted on: May 20, 2014
19 May 2014, Makati, Philippines – SM Investments Corporation (SM) returned to the organized market after its maiden listing two years ago. It listed its PhP 15 billion Fixed Rate Series E Bonds due 2021 and Series F Bonds due 2024 on the PDEx bourse, bringing the year-to-date total of new listings to PhP109.80 billion – 31% greater than the total new bond listings for the whole of 2013. This means that the market is just about Php 1.0 billion away from breaching the banner year 2012 for the largest amount of new listings in a year.
Buoyed by the country’s growing economy and investor appetite, the SM Bonds have met strong interest in the primary market thus leading to the exercise of its greenshoe option.
PDEx Chairman & CEO Cesar B. Crisol said, “We hope you share our excitement about the corporate bond market’s performance and the way in which these long term instruments are growing in recognition as mainstream financial products, promising a brighter and more dynamic future for Philippine investors and corporate issuers.”
Mr. Crisol also added, ‘We thank everyone with us today for your continued support enables us to strengthen our core as an Infrastructure provider, ensuring that trading activities across multiple markets and asset classes operate under an environment of integrity, transparency, and safety.”
For his part, SM Investments Corporation Executive Vice President and CFO Jose T. Sio said, “After the upgrading of Philippine credit, we expect that the economy of the Philippines will turn to its second stage of development. And it is important that the Philippines should have a reliable and dynamic platform where businessmen can secure financing from investors. It has been a long way for PDEx and I would like to congratulate the PDS Group of Companies for the job well done.”
The SM Bonds, offered in two tranches (Series E and Series F), carry a coupon rate of 5.2958% and 5.6125% per annum respectively. The Philippine Rating Services Corporation (PhilRatings) assigned the newly issued SM Bonds with a PRS Aaa – the highest rating that denotes that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.
The event was held at the PDS Group Office at The Enterprise Center, Makati City and was attended by representatives from the Issue Participants, including BDO Capital & Investment Corporation President Eduardo V. Francisco, BPI Capital Corporation Business Development Director and Corporate Finance Head Luis C. Urcia, China Banking Corporation First Vice President Virgilio O. Chua, First Metro Investment Corporation President Roberto Juanchito T. Dispo, and Land Bank of the Philippines Vice President James Aldana. #