SM Investments Corp. (SMIC) is reducing the size of its planned bond offering to up to P10 billion from the original P15 billion.

In an Aug. 25 letter to the exchange, the Sy-led conglomerate said it had amended its prospectus for the planned initial offering of its proposed P30-billion debt securities program.

The base issue size for the first tranche has been trimmed to P5 billion from P10 billion, while the oversubscription option will remain at P5 billion. The bonds will have a tenor of three years and six months.

To recall, SMIC applied for the shelf registration of a three-year P30-billion bond program with the Securities and Exchange Commission in mid-July. In the prospectus, the company indicated an initial bond issuance amounting to P10 billion with an oversubscription option of up to P5 billion.

SMIC said then that the initial tranche was given a PRS Aaa credit rating by local debt watcher Philippine Ratings Services Corp. (PhilRatings). PRS Aaa is the top credit rating given by PhilRatings, which means the obligation has minimal credit risk and the issuing company has an “extremely strong” capacity to fulfill its financial commitment.

“Further details on the offer will be made available to the public once finalized,” SMIC said.

The company also listed P5.6-billion bonds at the Philippine Dealing and Exchange Corp. in July, its fifth listed securities based on records from the fixed-income exchange.

SMIC’s earnings dropped 69% to P7.09 billion in the first half of the year, as its revenues declined 21% to P185.53 billion due to the impact of the coronavirus pandemic to its malls and banking businesses.

Shares in the company at the stock exchange gained P6 or 0.68% to close at P887 each on Wednesday. — Denise A. Valdez