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SMIC pegs interest rate of P10-billion bonds at 3.3613% a year

Conglomerate SM Investments Corp. said Friday it set the interest rate for its 3.5-year P10-billion fixed-rate bond offering at 3.3613 percent per annum.

SMIC said in a disclosure to the stock exchange Friday the P10-billion bond offering represented the first tranche of the recently-approved P30-billion bond shelf registration program.

The company did not disclose the timetable of the offering.

The first tranche consists of 3.5-year Series H bonds due in 2024 to be issued in minimum denominations of P20,000 and in multiples of P10,000. The bonds will be listed on Philippine Dealing & Exchange Corp.

The first tranche bonds will be offered to the public through BDO Capital & Investment Corp., China Bank Capital, BPI Capital Corp., First Metro Investment Corp. and SB Capital as joint lead underwriters.

It said the net proceeds would be used to refinance existing debt.

The Series H bonds were assigned PRS Aaa rating with a stable outlook by the Philippine Ratings Services Corp.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. This means that the issuer’s capacity to meet its financial commitment is extremely strong. PRS Aaa is the highest credit rating assigned by PhilRatings.

The conglomerate reported consolidated net income of P7.1 billion in the first half, down 69 percent from P23 billion in the same period last year.

Consolidated revenues decreased 21 percent to P185.5 billion in the six-month period from P233.7 billion a year ago.

The property and banking businesses accounted for 61 percent and 34 percent of net income, while retail contributed 5 percent.

SMIC, which has investments in banking, real estate and retail, plans to spend between P94 billion and P98 billion in capital expenditures this year.

The group earlier allocated P80 billion to fund the shopping mall and residential projects of real estate subsidiary SM Prime Holdings Inc.

Topics: SM Investments Corp. , fixed-rate bond offering , Philippine Dealing & Exchange Corp.
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