SM Investments Corp. on Monday priced its 15 billion peso retail bond offering, the proceeds of which will refinance long-term debt and maturing bonds and fund general corporate operations.

SMIC said in a statement to the stock exchange that the three-year Series I retail bond will bear an interest rate of 3.5915% to maturity in 2025, while the five-year Series J retail bond will have an interest rate of 4.7713% maturing in 2027.

The bonds will be offered to investors through underwriters from February 7 to 11 and will be listed on the Philippine Dealing & Exchange Corp.

The conglomerate will issue an aggregate principal amount of 10 billion pesos, with an oversubscription option for an additional 5 billion pesos. The bonds will be issued from the 30 billion peso debt securities program approved by the Securities and Exchange Commission in 2020.

BDO Capital and Investments Corp., China Bank Capital, BPI Capital Corp., East West Banking Corp., First Metro Investments Corp., RCBC Capital Corp. and SB Capital are the co-lead managers of the offering.

The bond offering was assigned the highest credit rating of PRS Aaa, with a stable outlook by Philippine Rating Services Corp.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. This means that the company’s ability to meet its financial commitment on the obligation is extremely strong.

In the meantime, a stable outlook indicates that ratings should hold or remain unchanged over the next twelve months.

SMIC is one of the largest conglomerates in the Philippines, with core businesses in retail, real estate and banking. It also invests in companies presenting strong growth opportunities in the national economy.

The conglomerate reported net income of 27.2 billion pesos in the first three quarters of 2021, up 72% from the same period in 2020.

Nine-month consolidated revenue increased 5% to 289.4 billion pesos from a year earlier.

SMIC’s share price fell 2.7% on Monday to close at 950 pesos.