SM Investments Corp. (SMIC) will exercise the early redemption of its 10-year bonds due in 2024 on May 19, its 14th interest payment date, the Sy-led listed holding company told the stock exchange on Monday.

SMIC’s “Series F” bonds, which are listed on the Philippine Dealing Exchange, will have an early redemption price of 102% of its principal amount.

According to its listing at the Philippine Dealing and Exchange Corp., the bonds have an issued amount of P3.33 billion with a coupon rate of 5.6125%.

The bonds were part of the P10-billion fixed-rate bonds SMIC issued in 2014. In its final prospectus, the net proceeds of the issue are said to be used “primarily to refinance certain existing debt obligations and finance expansion projects.”

The company notified Philippine National Bank Trust Banking Group, the assigned trustee of the bonds, about its plan to redeem the bonds ahead of its maturity date.

On Tuesday, SMIC shares at the stock exchange went down by 0.21% or P2 to close at P970 each. — K.C.G. Valmonte

Source: Business World