Philippines' SM Investments lifts retail bond offer to PHP 15 billion

By Marisa Wong

Madison, Wis., July 9 - SM Investments Corp. said it upsized its issue of 6% series C seven-year bonds and 6.9442% series D 10-year bonds to PHP 15 billion from PHP 10 billion due to strong demand from retail and institutional investors.

BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp. and First Metro Investment Corp. are the joint lead underwriters who exercised the PHP 5 billion oversubscription option in full. BDO Capital and First Metro are also acting as co-lead managers.

According to a previous announcement, there are seven other participating underwriters for the bond issue.

The two-tranche retail bond offering opened on June 27 and closed on July 6. The series C and series D bonds will be issued on July 16.

This is SM Investments' second offering of peso-denominated bonds to the public. It follows the company's maiden bond issue in 2009, which was also upsized due to strong investor demand. The offer was doubled to PHP 10 billion from PHP 5 billion.

The current issue has been rated Aaa by Philippine Rating Services Corp.

Proceeds will be used to partially finance the company's capital expenditure requirements for the next five years and for general corporate purposes.

The Pasay City, Philippines-based company owns and develops commercial properties in the retail and tourism sectors.

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