SM Investments Corp. upsized its retail bond issue to US$357.9 million from US$238.6 million due to robust demand from both retail and institutional investors.
SMIC said the bonds, which compromise six percent Series C bonds due 2019 and 6.9442-percent Series D Bonds due
2022, were taken up by a wide spectrum of investors ranging from individuals in the retail market,banks, investment funds, pension funds, insurance companies and other corporates.
The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option.
SMIC intends to use proceeds from the issue to partly fund its capital expenditure requirements and for general corporate purposes.
The bond issue was assigned the highest corporate rating of PRS AAA by Philippine Ratings Services Corp. The rating denotes that such obligations are of the highest quality with minimal credit risk, and that the issuing company’s capacity to meet its financial commitment on the obligation is extremely strong.
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