The country’s largest conglomerate, SM Investments Corp. (SMIC), has filed a registration statement to raise up to 15 billion pesos from the long-term peso-denominated bond offering by February of next year.
The fixed-rate bonds will form the second installment of its 30 billion peso debt securities registration with the Securities and Exchange Commission (SEC).
Basic offer P10-B
Based on the SEC filing, these debt securities will be divided into two series, one of which will mature in 2025 and the other in 2027. The bonds will be listed on the Philippine Dealing & Exchange Corp.
The size of the basic supply is 10 billion pesos, but the minimum wage reserves the possibility of borrowing an additional 5 billion pesos in the market in case of overwhelming demand.
The net proceeds will be used to refinance its existing debts and for general business purposes.
The bonds will be issued in non-certificate form in minimum denominations of P 20,000 each, and in multiples of P 10,000 thereafter, and traded in denominations of P 10,000 on the secondary market.
SMIC has mandated the affiliated investment companies BDO Capital & Investment Corp. and Chinabank Capital as co-issue managers, bookkeepers and principal underwriters for this offering.
BPI Capital, Eastwest, First Metro Investment Corp., RCBC Capital Corp. and SB Capital were also retained as associate bookkeepers and principal underwriters.
The bonds are rated âPRS Aaaâ, the highest rating assigned by the local debt watchdog Philippine Rating Services Corp., with a âstableâ outlook.
Obligations rated âPRS Aaaâ are considered âof the highest quality with minimal credit riskâ. The obligor’s ability to meet its financial commitment under the obligation is considered âextremely strongâ.
A stable outlook, on the other hand, indicates that the rating is likely to be maintained or remain unchanged over the next 12 months.
The minimum wage is currently valued by the stock market at 1.17 trillion pesos, making it the most valuable Filipino company to date. It is the dominant player in local shops, banking and real estate.
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