Demand from onshore investors helped SM Group, a Philippine conglomerate, to sell a keenly priced $500 million bond yesterday. The five-year notes are issued by SM Investments Corporation SMIC, the group holding company, and will pay investors a 6% coupon.
Close to two-thirds of the bonds, or $325 million, were bought by accounts based in the Philippines, where investors took pricing cues from the sovereign bond market. With the notes priced at par, the 6% coupon represents a 140bp spread over the Republic of the Philippines curve, which is at the tight end of the pricing range discussed with investors in the run-up to the deal.
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