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May 27, 2024

SMC bank eyes at least P3B as it taps domestic bond market for the first time

The banking arm of diversified conglomerate San Miguel Corp. (SMC) led by bankero Michelangelo Aguilar is tapping the domestic bond market for the first time to raise at least P3 billion via its maiden peso bond offering.

Bank of Commerce has started offering Series A bonds with a tenor of two years and a fixed rate of 5.0263 percent per annum to the public. The offer period will end on July 22 and the bonds would be listed on the Philippine Dealing and Exchange Corp. (PDEx) on July 29.

The proceeds of the fund raising activity that is part of the bank’s P20 billion bond program would be used to manage the bank’s net interest margin by matching long-term assets with long-term funding to reduce interest rate risk, to diversify funding sources, and for general corporate purposes.

Bank of Commerce said the bond issuance has an oversubscription option, while the issuer could shorten the offer period.

It has appointed ING Bank N.V., Manila Branch (ING) and Philippine Commercial Capital Inc (PCCI) as joint lead arrangers and joint bookrunners, while Bank of Commerce is also acting as a selling agent.