Conglomerate SM Investments Corp. said Friday it is raising up to P15 billion from the issuance of fixed-rate bonds.
SM Investments said in a disclosure to the stock exchange it filed an application with the Securities and Exchange Commission to issue P10-billion worth of bonds with an oversubscription option for another P5 billion.
The bonds will be issued as a second tranche from SM Investments’ P30-billion bond shelf registration program approved by the SEC in 2020.
The proposed bonds were assigned a rating of PRS Aaa by the Philippine Ratings Services Corp. PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong
“The ratings reflect SMIC’s core businesses with strong market positions; its healthy balance sheet, with ample liquidity and sound capital structure; and expectations that improved profitability will be sustained, in line with the gradual re-opening and recovery of the domestic economy,” PhilRatings said.
“Moving forward, profitability measures will show annual improvement, supported by sustained revenue growth. The expected completion of projects in the property business and the opening of new stores are expected to expand the group’s portfolio, sustaining growth over the projected period,” it said.
Meanwhile, SM Investments has the Best Investor Relations website award in the recent IR Magazine South East Asia Awards 2021.
“We are grateful for this award and recognize the importance of providing engaging, timely and up-to-date information to all of our stakeholders. This has been particularly the case given the difficulties of holding face-to-face meetings in recent months,” said Timothy Daniels, SM Investments consultant for investor relations and sustainabilitySM Investments is one of the Philippines’ largest conglomerates, with core businesses in retail, property and banking.