SM Investments Corp. (SMIC) has received the approval of the Securities and Exchange Commission (SEC) for the shelf registration of a P30-billion bond program.
In a disclosure to the exchange on Thursday, the conglomerate said it has recently received a pre-effective clearance letter from the SEC for its proposed debt securities program.
The SEC also issued a statement, saying SMIC’s registration was approved by the commission en banc in a Sept. 15 meeting.
The company plans to initially offer up to P10 billion fixed-rate bonds, from which P5 billion is an oversubscription option. The offer is estimated to generate P9.89 billion in net proceeds, which SMIC will use to refinance existing loans.
This first tranche will comprise 3.5-year bonds due in 2024, which will be issued in minimum denominations of P20,000, and in multiples of P10,000 thereafter. They will be listed on Philippine Dealing & Exchange Corp.
SMIC has tapped BDO Capital & Investment Corp., China Bank Capital, BPI Capital Corp., First Metro Investment Corp., and SB Capital as joint lead underwriters for the initial tranche.
The remaining securities from the P30-billion bond program may be issued in tranches within a three-year period.
“Further details on the bonds will promptly be disclosed to the public as it becomes available,” SMIC said.
The company posted a 69% earnings drop to P7.09 billion in the first semester. Its revenues fell 21% to P185.53 billion, as the coronavirus pandemic weighed on its malls and banking businesses.
Shares in SMIC at the stock exchange slid P5 or 0.55% to P905 each on Thursday. — Denise A. Valdez