SMIC raises $500M from offshore bond issue


Posted at Oct 11 2012 11:38 AM | Updated as of Oct 11 2012 07:38 PM

MANILA, Philippines - SM Investments Corp. has completed its offshore bond offer, selling $500 million in US dollar-denominated 7-year bonds at a fixed rate of 4.25% per anum. 

In a statement, SMIC said the bond offer was "substantially oversubscribed", attracting subscriptions of $3.1 billion from institutional and private banking investors from the Philippines, Asia and Europe. This allowed the bond issue to be increased from the initial size of $200 million. 

The bond issue was said to be priced with one of the lowest ever coupons for a 7-year fixed rate bond issued by a Philippine company.

"We would like to thank the investors for giving us their continued support. This exercise is also our way of maintaining our presence in the bond market and fostering a sustainable relationship with the international investment community," SMIC Executive Vice President and CFO Jose T. Sio said. 

SMIC will use the proceeds for refinancing and debt management. 

SMIC had appointed Citi, Deutsche Bank, and J.P. Morgan as joint lead managers and joint bookrunners for the transaction.