SMIC raises P10 billion from bonds

 

SM Investments Corp. (SMIC) has successfully raised P10 billion from the issuance of fixed rate bonds.

Proceeds would be used to refinance debt, SMIC said.

The bonds, which were listed at the Philippine Dealing & Exchange Corp. (PDEx), are maturing in 2024 and were priced to yield 3.3613 percent per annum.

The P10 billion bonds represent the first issuance out of SMIC’s P30 billion debt program under a shelf registration of three years.

In its meeting on Sept. 15, the SEC en banc resolved to render effective the registration statement of SMIC for debt securities to be issued in tranches within three years.

SM tapped BDO Capital, China Bank Capital, BPI Capital, First Metro Investment Corp. (FMIC) and Security Bank Capital as joint lead underwriters.

As a conglomerate, SMIC is invested in market leading businesses in retail, banking and property. It also invests in ventures that capture high growth  opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified with its food, non food and specialty retail stores.

Property arm SM Prime Holdings 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.

SM’s interests in banking are in BDO Unibank the country’s largest bank and China Banking Corp., the sixth largest bank.

The company reported a consolidated net income of P7.1 billion in the first half of the year, down 69 percent as some of its businesses were hit by the negative impact of the coronavirus disease 2019 or COVID-19 pandemic. Property and banking businesses accounted for 61 percent and 34 percent, respectively, while retail accounted for five percent.

By: Iris Gonzales (The Philippine Star )

Source: Peso Economics