MANILA, Philippines — SM Investments Corporation (SMIC) has successfully launched and priced a 5-year convertible bond to raise $250 million for the refinancing of existing debt and general corporate purposes.

In a disclosure to the Philippine Stock Exchange, SMIC said the bonds feature a coupon of 1.625 percent and yield to maturity of 2.875 percent per annum with a conversion premium of 20 percent.

The issue was offered in a Reg-S format and was structured as an accelerated bookbuild. The bond offering attracted high quality investors from across Asia and Europe, SMIC said.

“This landmark transaction provides SMIC with attractive, low cost financing, while achieving a conversion price at a premium to the current share price,” the firm noted.

The transaction is the first commercial bond issuance by a Philippine company in 2012 and SMIC’s second in its corporate history, after its maiden issuance in 2007. Joint bookrunners of the issue are Citigroup and J.P. Morgan.

SMIC reported a 13.6 percent improvement in consolidated net income to P14.17 billion for the first nine months of 2011 from P12.48 billion in the same period last year.

Consolidated revenues grew by 13 percent to P140.10 billion, as compared to P124.34 billion in 2010 on the back of the sustained robust performance of its core businesses.

“SMIC realized its revenue and income growth objectives due to the consistent achievements attained by its subsidiaries,” said SM president Harley T. Sy.

He explained that, “our strategy is to focus on our core businesses where we have the necessary expertise to continually expand and deliver value for all our stakeholders. We intend to maintain this approach in the last quarter of 2011, which is traditionally our strongest period.”

Among SMIC’s core businesses, banks contributed the most at 31.3 percent to the company’s consolidated net income. This was followed by retail and shopping malls with 28.1 percent and 23.0 percent, respectively. SMIC’s real property accounted for 17.6 percent.