SMIC’s board of directors approved yesterday the P50 billion package under the three-year shelf registration facility of the Securities and Exchange Commission. File photo
MANILA, Philippines – SM Investments Corp. (SMIC) has launched a new round of fixed rate bond offer worth P50 billion, with an initial tranche of up to P20 billion targeted to be issued this year.
SMIC’s board of directors approved yesterday the P50 billion package under the three-year shelf registration facility of the Securities and Exchange Commission.
Initial issuance under this program is expected later this year in the amount of P15 billion with an oversubscription option of up to P5 billion,” SMIC said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.
SMIC’s management has yet to negotiate and finalize the terms and conditions including pricing, tenor and any increase in issuance amount.
SMIC chief finance officer Jose Sio said proceeds would be used to support the expansion of its subsidiaries.
The tenor may be seven to 10 years given the ample liquidity in the market, Sio added.
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In the first half of the year, SMIC reported a consolidated net income of P13.5 billion, an increase of 10 percent over the same period last year, with growth led by the property business.
Excluding extraordinary items, recurring income grew 13 percent.
Similarly, consolidated revenues grew six percent to P138.9 billion in the first half from the P130.9 billion generated in the same period last year.
By business segments, SM Prime Holdings registered consolidated net income of P18.7 billion, up 90 percent compared with P9.8 billion in the same period last year. Excluding one-time trading gains on the sale of marketable securities, recurring net income was up 15 percent to P11.2 billion year-on-year.
SM’s retail operations consist of non-food under The SM Store and food under SM Markets comprising of SM Supermarket, SM Hypermarket, and Savemore and other food retail stores under Waltermart and Alfamart.
SM’s property arm, SM Prime Holdings, Inc., meanwhile, is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments.
