SM Investments Corp., the listed holding company of the Sy family, said Friday it obtained the Securities and Exchange Commission’s approval for shelf-registration of P50 billion worth of fixed-rate bonds.
SEC commission secretary Armando Pan said the corporate regulator had also approved SMIC’s initial issuance of seven-year, P15 billion worth of bonds with an over allotment option for another P5 billion.
The conglomerate plans to issue the bonds next month.
SMIC is one of the country’s largest publicly listed companies with core investments in banking and property development. Outside these core businesses, the group also has investments in retail, mining and tourism-oriented developments.
Proceeds from the bond offering will be used to finance future investments and strategic acquisitions particularly in the retail and property sectors.
“The issuer [SMIC] intends to use P13.67 billion of the proceeds from the offer to finance future investments and strategic acquisitions. Part of the strategies of the issuer is to maintain its leading market share in its retail and property business segments by diversifying and expanding the businesses of the group,” the company said.
“The issuer intends to accomplish this by continuing to expand the group’s mall and retail activities into major centers of population in Metro Manila and particularly in the provinces where there are opportunities for growth, capturing strategic opportunities overseas, developing opportunities in the property development, tourism and leisure sectors, where it believes there are significant opportunities for growth as the Philippines becomes a more attractive tourist destination,” it said.
The planned investments and acquisitions will depend on the results of the evaluation and due diligence.