SMIC to issue long-term dollar bonds


Posted at Oct 03 2012 03:01 PM | Updated as of Oct 04 2012 03:41 AM

 MANILA, Philippines - Publicly listed SM Investments Corp. will issue long-term US dollar bonds to take advantage of the low interest rates and to refinance its old debts.

In a statement, SMIC said its board of directors approved the issuance of 7 and 10-year US dollar bonds. 

"The offering is a debt management exercise which aims to further lengthen the company’s debt profile and take advantage of the much improved interest rate environment," SMIC said. 

Citi, JP Morgan and Deutsche were appointed as joint underwriters for the offering. 

Management has been authorized to negotiate and finalize the amount, terms and pricing of the bond issue.

Last July, SMIC offered P15 billion worth of retail bonds, to raise funds for the expansion of its office and hotel businesses. The bond issue's initial size was P10 billion but was increased due to strong demand from investors.