SM Launches PHP10 Billion Retail Bond Offering

(27 June 2012. Pasay City, Philippines) SM Investments Corporation (SM) will formally launch today its Php 10 billion retail bond offering in an investor presentation at the SMX Convention Center. The launch came after SM obtained the final approval of the Philippine Securities and Exchange Commission (SEC). The offer is worth Php 10 billion with an option to issue an additional amount of up to Php 5.0 billion. The fixed-rate bonds are being issued in two tranches: Series C will mature in seven-years while Series D will mature in ten-years, with coupon rates of 6.0000% and 6.9442%, respectively. The offer period will end on July 6, 2012, with an issue date of July 16, 2012. The bonds shall be issued in scripless form in minimum denominations of P20,000.00 each, and in multiples of P10,000.00 thereafter.

The SM bonds are Triple A rated, the highest assigned by Philippine Ratings Services Corporation (PhilRatings). This denotes that such obligations are of the highest quality with minimal credit risk, and extremely strong financial commitment from SM to meet its obligations.

The proceeds of the issue will be used by SM to partially finance its capital expenditure requirements for the next five years and for general corporate purposes.

SM has organized a group of eleven underwriters to distribute the bonds. Joint lead underwriters are BDO Capital & Investment Corporation, BPI Capital Corporation, China Banking Corporation, and First Metro Investment Corporation.

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For further information, please contact:

Ms. Corazon P. Guidote
Senior Vice President for Investor Relations
SM Investments Corporation
Tel. 857-0117

Date: Wednesday, June 27, 2012