SMIC Sets Rates for PhP10B Retail Bonds

Pasay–(PHStocks)—SM Investments Corporation (SMIC, PSE: SM) today set the interest rates for its Peso-denominated Series C, 7-year retail bonds at 6.0% p.a., and its Series D, 10-year retail bonds at 6.9442% p.a. SM will issue an aggregate principal amount of PhP10 billion of the Series C and Series D bonds, with an option to issue an additional amount of up to PhP5 billion. The bonds are scheduled to be offered by SM to investors through underwriters from June 27, 2012 to July 6, 2012 and are set to be issued on July 16, 2012.

This new series of SM bonds due 2019 and 2022 is just the second offering by SM of Philippine-currency denominated bonds to the public. The new SM bonds follow its highly successful PhP5 billion maiden bond issue in 2009, which was upsized to PhP10 billion due to very strong investor demand. Both the 2009 and this new issue of SM bonds are rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings. A PRS Aaa 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 obligations is extremely strong.

The SM bonds’ joint issue managers and bookrunners are BDO Capital & Investment Corporation and First Metro Investment Corp. (PSE: FMIC), while joint lead underwriters are BDO Capital & Investment, BPI Capital Corporation, China Banking Corp. (PSE: CHIB), and FMIC. Other than the joint lead underwriters, there shall be seven participating underwriters for the bond issue.

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