MANILA, Philippines - SM Investments Corp. (SMIC), the listed flagship firm of the family of retail tycoon Henry Sy, plans to issue up to P15 billion worth of fixed-rate peso retail bonds.
In a statement, SMIC said the planned amount includes an oversubscription of P5 billion.
The bonds will be offered in two tranches with tenors of 10 and 15 years, SMIC said.
SMIC has appointed BDO Capital and Investment Corp. and First Metro Investment Corp. as co-lead managers for the offering.
Proceeds from the bond issue will be used fund general corporate purposes.
SMIC’s board has authorized the management to negotiate and finalize the terms and conditions, including pricing and any increase in issuance amount, and execute any and all documents necessary, to implement the retail bond issue.
SMIC has allotted around P54 billion to continue the expansion of its banking, shopping mall, and real estate businesses. The capital budget is higher than what it spent in 2011.
SMIC owns stakes in mall giant SM Prime Holdings Inc. property firm SM Development Corp., and lenders Banco De Oro Unibank and China Banking Corp. It also holds a 17 percent stake in Atlas Consolidated Mining and Development Corp.
This year’s spending budget, the highest ever for the company, will mostly go to mall development and construction of residential and office buildings.