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Success! That’s how the SM Investments Corp describe its sale of five-year dollar bonds worth $500 million. The Sy-led holding firm benefited from investors’ who shifted to the less risky asset.  SMIC sale is said to be the largest dollar bond offering since 1997, while its fixed rate of 6% per annum is the lowest rate ever for a Philippine firm.

“This landmark issue marks the first successful Philippine corporate that has capitalized on the reopening of the region’s debt capital markets. Strong offshore and onshore bids resulted in an oversubscribed issue, supporting the message that the market is open for Asian borrowers with strong credit and a compelling story,” SM Investments said.

The proceeds of the bonds sale would be used for general corporate purposes, which include the refinancing of some maturing obligations.

According to Corazon P. Guidote, vice-president for investor relations of SMIC, the bonds were actually “more than two times oversubscribed.”

SM Investments president Harley Sy said, “There is  reason for us to be more optimistic on near-term prospects now that the global economy appears to be stabilizing and recovering from the recent financial shake-up.”

Analyst Ignacio J. Soriano of Papa Securities Corp. said the Philippine Stock Exchange index lost another 0.74% the other day, primarily because of the demand for such bonds. He said investors have temporarily put their money in the bond market because of the attractive yields it offers and the lesser risk it entails.

SM Investments is now one of the largest holding companies in the country with a market capitalization of $3.8 billion as of June. Its mother company, the SM group is a dominant player in Philippine retail, mall operations and banking.  It is also setting its sight on residential and commercial property development, resort and hotels.