Posted on June 20, 2012 10:51:03 PM [
BusinessWorld Online ]
“SM Investments [yesterday] set the
interest rates for its peso-denominated Series C, seven-year retail bonds at
6.0% per annum, and its Series D, 10-year retail bonds at 6.9442% per annum,”
the holding firm said in a disclosure.
The bonds, which were approved by the
Securities and Exchange Commission on June 6, were recently top-rated by
Philippine Rating Services Corp., earning the local debt watcher’s outstanding
PRS Aaa rating.
“A PRS Aaa rating 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,” SM Investments noted.
The bonds will be offered from June 27
to July 6 in minimum denominations of P20,000.00 each, and in multiples of
P10,000.00 thereafter, with an issue date slated for July 16.
BDO Capital & Investment Corp.,
BPI Capital Corp., China Banking Corp., and First Metro Investment Corp. will
be serving as joint lead underwriters for the bond offer.
With the overallotment option of P5
billion being exercised, SM Investments expects to bag P14.883 billion in net
proceeds, the disclosure showed.
Proceeds will go to land banking
initiatives as well as the construction of the 204-room Park Inn Davao by
Radisson and other hotel projects.
In addition, part of the proceeds will
also be allocated for the construction of various office buildings under unit
SM Land, Inc.
The firm allotted a record
P56.80-billion capital budget for this year -- a 20% increase from the year
previous -- to fund expansions for its flagship mall and condominium
development units SM Prime Holdings, Inc. and SM Development Corp. -- Franz
Jonathan G. de la Fuente
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