SM Group’s financial arm SM Investments Corp. (SM Investments) successfully priced a $500- million drawdown from its $3-billion multi-issuer Euro Medium-Term Notes (EMTN) program.

The notes will be listed on the Singapore Exchange Securities Trading Limited.

The issuance, which was more than three 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,” Amando Tetangco Jr., SM Investments chairperson, said.

Testament to investability

“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 which is, 135 basis points above the US treasury benchmark. The notes carry a coupon rate of 5.375 percent. The final spread represents a 35 basis point tightening from the initial price guidance.

‘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 which is, 135 basis points above the US treasury benchmark.

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 percent 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 have been mandated by SM Investments as joint lead managers and joint bookrunners, alongside BDO Capital and China Bank Capital as joint lead managers.