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Business

SM Investments raises $300-M from international bond offer

- Zinnia B. Dela Peña -
SM Investments Corp. (SMIC), the holding company of retail tycoon Henry Sy Sr., announced yesterday that it has successfully concluded its $300-million international bond offering despite volatile market conditions.

SMIC said it raised the bond offering to $300 million from the original issue size of only $200 million due to strong investor demand.

The bonds, offered in Singapore, carry a maturity rate of five years. ABN Amr, JP Morgan and Salomon Smith Barney acted as joint lead managers for the offering.

Commenting on the well-received offering, Sy, SMIC chairman said: "We are very pleased that the company is able to raise funding successfully despite market volatility. The positive feedback from investors highlights their strong interests in the company and its strategy going forward."

The offering marked the first international corporate note issue from Asia in the fourth quarter of 2002.

SMIC second executive vice-president for finance and chief financial officer Jose Sio said the company is proud to set a trend in the international capital market. "As one of the leading companies in the Philippines, we are pleased to have set a benchmark for corporate borrowers," he said.

Proceeds from the bond offering wil be used by the company to pay its debts and finance general corporate purposes.

SMIC has investments in a portfolio of companies that cover a wide range of industries in commercial center operations, retailing and merchandising, financial services and real estate development. It is owned entirely by the Sy family.

Its major subsidiaries and affiliates include SM Prime Holdings Inc., Shoemart Inc., Banco de Oro Universal Bank and SM Development Corp.

Shoemart is also slated to undertake an initial public offering of its shares late this year or next year to raise the needed cash to fund its massive expansion program in both urban and provincial areas.

It operates the chain of SM Department Stores. It continues to be the country’s largest mall operator with 12 malls with a total gross floor area of 1.8 million square meters located across the country.

Shoemart is reportedly looking to raise cash from both local and foreign investors to beef up operations to keep up with the slow but steady influx of foreign retail giants into the country.

In terms of gross revenues, Shoemart is among the top 50 corporations in the Philippines and the market leader in the retail trade business.

SM Prime continues to undertake its nationwide expansion binge, targetting to put up an average of two supermalls every year for the next five years.

Also part of the company’s expansion include largely untapped provincial areas such as Cavite, Laguna, Quezon, Bulacan, Pangasinan, Baguio and other areas in Mindanao as encouraging results of their recent provincial malls have driven SM Prime to acquire land and prime properties in these areas.

The Group’s expansion in both urban and provincial areas has allowed it to open new markets and service more customers and is a reflection of its confidence in the Philippine economy.

vuukle comment

DEPARTMENT STORES

DEVELOPMENT CORP

HENRY SY SR.

INVESTMENTS CORP

JOSE SIO

MORGAN AND SALOMON SMITH BARNEY

OFFERING

ORO UNIVERSAL BANK

PRIME HOLDINGS INC

SHOEMART

SHOEMART INC

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