Release date- 26092016 - At the Philippine Dealing System listing of SMPH P60 billion Bond issue. Standing: Romeo D. Uyan, Jr., President of China Bank Capital (9th from left), Cesar B. Crisol, President and CEO of Philippine Dealing System (8th from left), Virgilio O. Chua, Managing Director of China Bank Capital, (6th from left).
Seating, from L-R: (2nd) Marcelo C. Fernando, Jr., SVP of Treasury Group, SM Investment Corporation; (3rd) John N.P. Ong, CFO, SM Prime Holdings, Inc., (4th) Jeffrey C. Lim, EVP of SM Prime Holdings, Inc, (5th) Hans T. Sy, President & CEO of SM Prime Holdings, Inc., and (6th) Ricardo R. Chua, President of China Banking Corp. Also in photo are FMIC president Rabboni Francis Arjonillo (1st from left), BPI President Cezar Consing (7th from left), and BPI EVP Simon Paterno (rightmost)
China Bank Capital Corporation, the investment arm of China Banking Corporation (China Bank), completed three landmark deals recently-a testament to the investment house's performance of late.
China Bank Capital acted as Joint Issue Manager, Joint Lead Underwriter, and Joint Bookrunner for the Bond issue of SM Prime Holdings, Inc. (SMPH). The SMPH Series F Bonds due 2026 is the maiden tranche issued under the P60 billion shelf registration. It was launched as a P5 billion Retail Bond with an oversubscription option of P5 billion. The issuance was met with strong demand from both institutional and retail investors, translating to an order book of over P29 billion or an oversubscription by 5.86x. This marks the third time China Bank Capital has been mandated by SMPH to underwrite their retail bond issuance.
In other significant deals, China Bank Capital acted as Joint Lead Underwriter and Joint Bookrunner for Ayala Corporation's P10 billion 7-year Bond issue. The transaction was launched as part of the shelf registration of Ayala's P20 Billion Fixed Rate Bonds Program, with the P10 Billion issuance as the maiden tranche. The issue's proceeds were used to refinance the company's maturing peso denominated debt and those with early redemption options. The offer size was oversubscribed by 1.8x. This allowed the Ayala to price at the tight end of the spread. The issue achieved the lowest coupon for a 7-year bond issuance in the local capital market since 2009.
China Bank Capital also acted as Joint Lead Manager, Joint Lead Underwriter and Bookrunner for SMC Global Power Holdings Corp.'s domestic P15 billion Retail Bond issue. The transaction marks SMCGP's first peso-denominated Bond Issuance. The proceeds were used to refinance a US$300 million outstanding short term loan, payment of related transaction fees, costs and expenses, and for general corporate purposes. The Bonds were met with a strong demand from both institutional and retail investors, translating to an orderbook of over P21 billion.
China Bank has been a significant presence in the investment banking and capital markets space in the last three years, and has been recognized by the Philippine Dealing System as the top corporate issue manager in the bank category for 2015. China Bank Capital recently received approval to establish two new subsidiaries, China Bank Securities Corporation and CBC Assets One (SPC) Inc., to round out its offerings and help strengthen its capabilities in the field of equity capital market and securitization.