SM INVESTMENTS CORP. (SMIC) disclosed its proposed tenors for its P30-billion securities program applied with the Securities and Exchange Commission (SEC).
The listed firm on Thursday apprised the stock exchange about its proposed terms and conditions for its latest debt program.
It plans to issue the bonds with a tenor of three, five, and/or seven years under a three-year shelf registration with the SEC.
“The terms are subject to further changes based on market conditions and to appropriate regulatory approvals,” it noted.
The company eyes the first bond issuance of up to P10 billion, with an oversubscription option of up to P5 billion.
The said first tranche was rated PRS Aaa by the Philippine Ratings Services Corp. (Philratings), which is the highest credit rating it gives to corporate bonds. It means the bonds have minimal credit risk and that SMIC is deemed to have an “extremely strong” capacity to meet its financial commitments.
SMIC still has not specified where the proceeds of the debt program will be used for.
Shares in SMIC were unchanged at P900 each on Thursday. — Adam J. Ang