The offer comes in 3 tenors: 5-year, 7-year and 10-year. The indicative rates are 5.6% (5yrs), 6% (7yrs) and 6.4% (10yrs) but this is still to be finalized by March 1.
At above quoted rates, this definitely beats your time deposit returns. Not risk free though, risk is if SMC files for bankruptcy, preferred shareholders are not the first in line post-liquidation of assets. Lenders will definitely be first, then preferred shareholders, followed by common shareholders.
Closing price of MER as of 01Oct is PHP295, up from PHP286 the day before. Still, if SMC sold at just PHP235 per share, that would give them substantial profits since they bought MER at PHP90/share in 2009.
When we moved to northeast of Metro Manila, part of me was thinking (and wishing) that development up north will soon (or slowly) catch up with that of the south.