SMIC issues record $500 million bonds

MANILA, Philippines — Sy-led SM Investments Corp. (SMIC) made its largest offshore bond issuance since 2014, raising $500 million from the first tranche of its $3 billion multi-issuer Euro Medium Term Note (EMTN) program established last May.

The investment holding company of the Sy family said the notes issuance was 3.2 times oversubscribed, with final demand reaching $1.6 billion.

The net proceeds from the fund raising activity will be allocated for general corporate purposes.

Issued by SMIC’s wholly owned subsidiary, SMIC SG Holdings Pte. Ltd., the notes will be listed on the Singapore Exchange Securities Trading Ltd.

SMIC said the notes were priced at a yield of 5.466 percent, 135 basis points above the US treasury benchmark.

The notes carry a coupon rate of 5.375 percent, with the final spread representing a 35 basis point tightening from initial price guidance.

In terms of geography, SMIC said the notes were distributed to high-quality global accounts, 87 percent of which were from Asia and 13 percent from Europe, Middle East and Africa.

By investor type, bulk or 83 percent were distributed to fund managers/asset managers, while 11 percent were distributed to banks/financial institutions and six percent to private banks/others.

SMIC chairman Amando Tetangco Jr. said the positive reception of the maiden issuance is a testament to the investability of quality Philippine corporates.

“Our establishment of the pioneer EMTN program allows us to efficiently access funding with flexibility especially in times of volatility,” Tetangco said.

SMIC and SM Prime Holdings Inc. last May announced the establishment of a $3 billion multi-issuer EMTN program.

Jointly established by SMIC SG Holdings Pte. Ltd. and SM Prime’s wholly owned subsidiary SMPHI SG Holdings Pte. Ltd., the EMTN program will allow the companies to tap the offshore bond market to fund its continued growth and expansion.

SMIC is one of the leading Philippine companies invested in market-leading businesses in retail, banking and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.