SM Group raises $350M from dollar bond offer

Rappler.com

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The offer proceeds will be used for general corporate purposes and refinancing existing debts

GOING REGIONAL. Sy-led SM Group wants to be a major regional real estate player. Photo taken during the May 31 press briefing of SM Investments Corp with brothers Hans Sy (2nd from left) and Henry Jr. (3rd from left)

MANILA, Philippines (UPDATED) – SM Investments Corporation (SMIC), the listed holding company of retail tycoon Henry Sy, said Wednesday, June 4, it raised $350 million from the offer of 10-year senior unsecured bonds.

The transaction was the longest-dated US dollar bond issue made by the conglomerate and its fourth dollar bond offering since 2009, it said in a disclosure to the Philippine Stock Exchange.

“The success of this transaction highlighted the market’s confidence in SM’s credit story,” SMIC remarked.

The bonds were priced at a fixed rate of 4.875% per annum, lower than the 5.125% indicative rate earlier set by the company.

Proceeds from the issue will be used for general corporate purposes and refinancing of existing debts.

SMIC has investments in banking, real estate, retail and tourism. For this year, it set aside P80 billion in capital expenditures, of which bulk or P70 billion will be spent by property arm SM Prime Holdings Inc. About P5-6 billion will be spent for retail expansion and the remaining P5-4 billion will be used for the expansion of banking subsidiaries BDO Unibank and China Banking Corporation.

Citi and Standard Chartered Bank were joint lead managers and joint bookrunners for SMIC’s latest bond offer. – Rappler.com

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