SMIC eyes fresh P15B from planned bond issue

MANILA, Philippines - SM Investments Corp. (SMIC) is tapping the debt market anew as it aims to raise as much as P15 billion in fresh capital for its first major fundraising program this year.

In a disclosure to the local bourses, the Henry Sy-led conglomerate said its board approved yesterday the issuance of P10 billion worth of fixed-rate peso retail bonds, with an oversubscription option for another P5 billion.

“The bonds will be offered in one or two tranches with tenors of seven and/or 10 years,” SMIC said.

“Retail bond (issuance) to be completed sometime in April or May after the approval by the Securities and Exchange Commission of the issue requirements,” Jose T. Sio, executive vice-president and chief finance officer of SMIC, said in a text message.

BDO Capital and Investment Corp. has been appointed as issue manager.

“The proceeds of the bonds will be used to refinance maturing debt and for various expansion projects,” SMIC said.

In June 2012, SMIC raised P15 billion through the sale of peso-denominated fixed-rate bonds maturing in seven and 10 years.

In November, local debt watcher Philippine Ratings Services Corp. retained the top credit score for SMIC’s existing P25-billion bonds due to strong growth prospects.

SMIC is the investment holding company of Henry Sy Sr., the country’s richest man. It is into shopping malls and property development  (SM Prime Holdings Inc.), retail (SM Retail Inc.) financial services (BDO Unibank Inc. and China Banking Corp.), and hotels and conventions (SM Hotels and Conventions Corp.).

In January to September last year, its consolidated earnings rose 14 percent to P18.46 billion, powered by the group’s banking and mall businesses.