MANILA, Sept. 1 (PNA) — Strong demand for SM Prime Holdings’ (SM Prime) initial retail bond offering made the company hike to PHP 20 billion from PHP 15 billion its issuance Monday.
In a disclosure with the Philippine Stock Exchange (PSE), the company said the offering received strong response from individuals, banks, investment funds, pension funds, insurance companies, and corporates.
”The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option,” it said.
The bond, which were offered from August 13-22, 2014, are composed of a six-year bond with a yield of 5.1000 percent, seven-year bond with a yield of 5.2006 percent and 10-year bond with a yield of 5.7417 percent.
The Philippine Rating Services Corporation (PhilRatings) earlier gave these bonds respective ratings of PRS Aaa, the highest from PhilRatings, indicating that the bond has the highest quality with minimal credit risk.
BDO Capital & Investment Corporation and First Metro Investment Corporation (FMIC) served as joint issue managers and joint bookrunners for the issuance.
These two along with BPI Capital Corporation and China Banking Corporation (China Bank) were also tapped as joint lead underwriters.
The other underwriters for the bond are Land Bank of the Philippines (Landbank), Philippine Commercial Capital Inc., PNB Capital and Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corp. (PNA)