SMIC allots P115 billion for 2024 capex

MANILA, Philippines —  SM Investments Corp. (SMIC), the investment holding company of the Sy family, is spending up to P115 billion this year for the continuing expansion of its various businesses.

“Our (capital expenditures) projection this year for the group, that excludes the banks, is around P110 billion to P115 billion, more or less,” SMIC senior vice president for finance Franklin Gomez said in a media briefing yesterday.

Gomez said SMIC’s capex in 2023 was around P80 billion.

Gomez said the biggest component of the capex this year is integrated property developer SM Prime Holdings Inc., which is looking at P100 billion capital spending to support various programs.

SM Prime is currently in the process of establishing a Euro Medium-Term Note (EMTN) program together with SMIC.

The initial plan is the issuance of  a $3-billion euro medium-term note.

“The company has been on its continuous expansion mode. We will always be in need of financing. So it’s just a way for us to expand the portfolio of our sources so we have the ability to fully fund our expansion that we want to achieve,” Gomez said.

The SM Group has reiterated its continued commitment to expand its presence nationwide to serve more Filipinos and communities.

“We will continue to invest in growth in the Philippines and we are committed to being a catalyst for responsible development. We have a young, dynamic, higher-earning population who will help support and drive economic activity,” SMIC president and CEO Frederic DyBuncio said.

SM said there are still many areas in the country which have yet to benefit from access to modern retailing, formal financial services and integrated property developments.

“Our strategy is to continue to expand coverage nationwide to create new markets that improve access to these sectors,” DyBuncio said.

To help provide access to integrated properties, SM Prime is opening four new malls, one in Metro Manila and three in the provincial areas this year.

SM Development Corp. plans to roll out 8,000 to 10,000 residential units this year in the northern part of the country and across Visayas and Mindanao.

SM Hotels, for its part, is slated to officially launch its first Lanson Place property at the Mall of Asia Complex, Pasay City.

In retail, Alfamart, SM’s minimart grocery format, will expand its store expansion by at least 400 stores this year.

BDO also continues to expand coverage nationwide with BDO and BDO Network Bank, eyeing to increase branches by a combined 100 to 120 in 2024.

For SM-owned logistics company Airspeed, the company is keen on expanding its distribution facilities in key cities in Luzon, Visayas and Mindanao along with opening more kiosks and collaborations with service providers to offer better customer options, wider network, and quicker delivery times.