UPDATE 1-Manila's SM Investments prices 5-, 7-yr bonds

* 5-year bonds priced at 8.25 pct, 7-year at 9.1 percent

* Plans to raise up to $212 mln to fund expansion (Adds details)

MANILA, June 5 (Reuters) - Philippine mall-to-banking group SM Investments Corp (SM.PS) on Friday priced its up to 10 billion pesos ($211.7 million) 5- and 7-year bonds at least 1.5 percentage points above their comparable government debt.

The 5-year bonds were priced at 8.25 percent and the 7-year paper at 9.1 percent, the company said, confirming figures given earlier by a source at lead underwriter BDO Capital and Investment Corp.

The average best bid for 5-year government bonds PH5YT=RR was at 6.5792 percent and the seven-year PH7YT=RR was at 7.5917 percent at the close of secondary market trading on Friday.

SM had been looking to price the 5-year bonds at 7.75-8.25 percent and the 7-year debt at 8.6-8.9 percent. [ID:nMAN420083]

Proceeds from the bond sale will fund the expansion of the group, owned by one of the country's richest men, Henry Sy.

SM held domestic roadshows earlier this week ahead of the bond pricing which it said "were well attended by both institutional and retail investors with initial market demand exceeding the minimum issue amount."

The company has said the bonds, with an initial offering size of 5 billion pesos and an option to double it, will be offered to the public from June 8 to June 18.

Other lead underwriters are BPI Capital Corp, China Banking Corp, Union Bank of the Philippines and RCBC Capital Corp.

Low interest rates and ample liquidity in the financial system are encouraging many Philippine companies to raise funds via bonds.

In March, San Miguel Brewery (SMB.PS) raised 38.8 billion pesos from the sale of bonds in what was the Southeast Asian nation's biggest domestic corporate issue ever.

($1 = 47.24 pesos)

(Reporting by Manolo Serapio Jr.)