SM in no rush to tap $3 billion EMTN

MANILA, Philippines — The SM Group of the Sy family is in no hurry to tap its recently established $3 billion multi-issuer European Medium Term Note (EMTN) program.

“It’s gradual. Only when we need it,” SM Investments Corp. (SMIC) vice chairperson Teresita Sy-Coson told The STAR.

“We’re just planning ahead,” she said.

Jointly established by SMIC’s wholly owned subsidiary SMIC SG Holdings Pte. Ltd. and SM Holdings Inc.’s fully owned unit SMPHI SG Holdings Pte. Ltd., the EMTN program will allow the companies to tap the offshore bond market to fund their continued growth and expansion.

EMTNs are debt securities issued and traded internationally.

“SMIC and SM Prime have registered a joint program but have not made any announcements about utilizing it. It gives both companies more options if needed,” SMIC consultant for investor relations and sustainability Timothy Daniels told The STAR.

SMIC is one of the leading Philippine companies that 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.

Overall, the SM Group 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.

For this year, SMIC is spending up to P115 billion for the continuing expansion of its various businesses.

Taking up the biggest component of the capex this year is SM Prime, which is looking at P100 billion capital spending to support various programs.

SM Prime on its end is looking to raise as much as P25 billion from a proposed bond offering to fuel its expansion.

The company submitted to the Securities and Exchange Commission last March a registration statement for its application for the shelf registration of debt securities amounting to P100 billion.

SM Prime is looking at an initial offering of P20 billion worth of bonds, with an oversubscription option of up to P5 billion.