Corporate Bond Offering - SMC Global Power

[anditsnotmybirthday]

Tenor:

Series H - 3 yrs

Series I - 5 yrs

Series J - 7 years

Indicative rates (subject to change):

Series H - 6.25%

Series I - 6.8%

Series J - 7.4%

Bond offer period only until Mar. 20

** PRs Aaa rating.

Just got the quote recently. You may check on your local banks if they offer the same.

 

[amoiats]

@anditsnotmybirthday Charges involved?

 

[anditsnotmybirthday]

@amoiats Haven't checked with my loval branch manager yet, but I'm pretty sure these are subjected to 20% tax. See other comment for the after taxes rate.

 

[pentecostal1ness]

@anditsnotmybirthday Rates are gross right? So net rates would more or less be:

Series H - 5.00%

Series I - 5.44%

Series J - 5.52%

Rates for the 5 year tenor is better than the recent RTB, but lower than the Robinsons bank 5-year TD rate.

There seems to be a couple of upcoming bond offerings. Metroband and Ayala Land would also be offering.

Rates seems to be quite good. I have investments though in the older SMCGP bonds so I would be passing on this one.

 

[anditsnotmybirthday]

@pentecostal1ness Yup that is correct.

Btw, how is the SMC bond performing?

 

[pentecostal1ness]

@anditsnotmybirthday Market rate wise, they are under par right now.

Coupons are consistently paid though and so far, no news of defaulting on the bonds. Major concern though is that they already currently have 7 active bonds. This offering would bring that total to 10.