SM Investments Corp. (SMIC), the flagship firm of Philippines' richest man Henry Sy, plans to issue 400 million U.S. dollar-worth of seven-year offshore bonds, the holding firm told the Philippine Stock Exchange on Thursday.
The landmark deal will be a combination of bond swap and new fund-raising deal and is the first to be carried out by a Philippine corporate. The new 2017 bonds also carry the lowest coupon rate ever for a Philippine corporate bond issue of any maturity to date at 5.5 percent per annum.
Of the total new money 2017 Bonds to be issued, 27 percent will be allocated to onshore investors, 64 percent to Asian investors and 9 percent to European investors. The settlement date of the bond exchange and the new money issue is expected to be on Oct. 13, SMIC said.
"This transaction is a liability management exercise for SMIC which lengthens the duration of its existing debt while taking advantage of favorable market conditions," the firm said.
SM Investments Corp. is one of the largest conglomerates in the Philippines. It is engaged in real estate development, banking, retail, mall operations, leisure and tourism business.
source: Manila Bulletin, 07 October 2010
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