SM Investments Corp. said Thursday it priced a $500-million drawdown from its $3-billion multi-issuer euro medium-term notes (EMTN) program established in May this year. The notes will be listed on the Singapore Exchange Securities Trading Limited.
The issuance, which was 3.2 times oversubscribed, with final demand reaching $1.6 billion, marks SM Investments’ largest offshore bond issuance since 2014.
“Our establishment of the pioneer EMTN program allows us to efficiently access funding with flexibility especially in times of volatility,” said SM Investments chairman Amando Tetangco Jr. “We believe that the positive reception of this maiden issuance is a testament to the investability of quality Philippine corporates.”
The notes were priced at a yield of 5.466 percent or 135 basis points above the US treasury benchmark. The notes carry a coupon rate of 5.375 per cent. The final spread represents a 35-basis-point tightening from initial price guidance.
The 5-year notes were distributed to high-quality global accounts. By geography, the 5-year notes were distributed 87 percent to Asia and 13 per cent to EMEA. By investor type, the 5-year Notes were distributed 83 percent to fund managers/asset managers, 11 percent to banks/financial institutions and 6 percent to private banks/others.
Issued by SM Investments’ wholly-owned subsidiary SMIC SG Holdings Pte. Ltd., the notes are guaranteed by SM Investments.
HSBC, J.P. Morgan, Standard Chartered Bank and UBS served as joint lead managers and joint bookrunners, alongside BDO Capital and China Bank Capital as joint lead managers.
SM Investments said it would use the net proceeds from the EMTN issue for general corporate purposes.
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