SMIC plans to raise P15B from bonds offer | Inquirer Business

SMIC plans to raise P15B from bonds offer

MANILA, Philippines—Tycoon Henry Sy’s flagship holding firm SM Investments Corp. plans to raise as much as P15 billion from an offering of long-term peso-denominated bonds, boosting fresh funds for expansion of its office and hotel property businesses.

In a statement on Friday, SMIC said its board had approved the issuance of fixed rate bonds with tenors of 10 and 15 years with a base offering size of P10 billion and an option to increase by P5 billion in case of strong demand.

SMIC has appointed BDO Capital and Investment Corp. and First Metro Investment Corp. as co-lead managers for the offering. The proceeds of the bonds will be used for general corporate purposes, the statement said.

Article continues after this advertisement

The board also authorized the management to negotiate and finalize the terms and conditions, including pricing and any increase in issuance amount as well as to execute any and all documents necessary to implement the retail bond issue.

FEATURED STORIES

“This is largely for expansion projects like the 3 E-Com (building) and the hotels,” said SMIC investor relations chief Cora Guidote.

The last time that SMIC tapped the local retail bond market was in 2009 with a P10-billion issuance.

Article continues after this advertisement

SMIC is the country’s dominant player in retailing, banking (through Banco de Oro Unibank and China Bank) and shopping mall development (SM Prime Holdings Inc.). It is also a fast-growing player in the residential segment (SM Development Corp.) as well as in hotels, leisure estate and convention segment. It also has a 17.9-percent stake in mining firm Atlas Consolidated Mining & Development Corp.

Article continues after this advertisement

Based on its closing price of P651 per share on Friday, SMIC had a market capitalization of P396.5 billion at the local stock market.

SMIC grew its net profit last year by 15 percent to P21.2 billion on higher earnings from core banking, retailing, shopping mall and real estate businesses. Consolidated revenues rose by 13 percent to P200.7 billion from a year ago as all core businesses reported strong growth.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: bond offering, Business, SMIC

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.