Business

SMIC sets P30B bond offer

Sy-led holding firm SM Investments Corp. plans to tap the debt market with the issuance of P30 billion worth of retail bonds in the next three years.

Sy-led holding firm SM Investments Corp. plans to tap the debt market with the issuance of P30 billion worth of retail bonds in the next three years.

In a stock exchange filing, SMIC said the initial tranche would comprise P10 billion with an over subscription option of up to P5 billion.

Local credit watcher Philippine Ratings Services Corp. (PhilRatings) assigned its top rating of PRS Aaa to SMIC’s initial tranche.

The PRS Aaa rating means the issuer has minimal credit risk and that its capacity to meet its financial commitment is extremely strong.

SMIC has earmarked as much as P98 billion for capital spending this year, a big chunk of which or about P80 billion will to residential, shopping mall and leisure projects alone.

About P9 billion to P12 billion has been set aside for the branch expansion and IZt upgrade of its banks.

Another P5 billion will be spent on the construction of new retail stores and the modernization of existing ones.

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