Conglomerate SM Investments Corp. (SMIC) and its property arm SM Prime Holdings Inc. (SMPH) created a $3-billion European Medium-Term Note (EMTN) program to fund expansion plans.
“This EMTN program will allow SMIC and SMPH to tap the offshore bond market to fund its continued growth and expansion,” SMIC said in a disclosure to the stock exchange Wednesday.
SMIC did not disclose other details of the EMTN program.
The conglomerate reported plans to spend up to P115 billion in capital expenditures for 2024 primarily to fund the mall, residential and reclamation projects.
SMIC chalked up a net income of P18.4 billion in the first quarter of 2024, up 6 percent from P17.3 billion in the same period last year.
The group’s banking business accounted for 52 percent of reported net earnings from core businesses, followed by property at 29 percent, retail at 12 percent and portfolio investments at 7 percent.
Consolidated revenues rose 4 percent to P144 billion from P138.3 billion in the same period last year.
“We continue to benefit from the country’s underlying economic growth and we adapt to reflect consumers’ evolving spending habits and priorities,” said SMIC president and chief executive Frederic DyBuncio.
“Looking ahead, our outlook remains cautiously opmistic and our expansion is on track,” DyBuncio said.
Net income of SM Retail stood at P3.1 billion, down 20.5 percent from P3.9 billion in the same period last year. Revenues, however, went up 3 percent to P93.8 billion from P91.3 billion.
Revenues of food retail increased 6 percent to P57 billion, while non-food retail’s revenues of department stores reached P22.4 billion, down by 4 percent.
Revenues for specialty retail slipped 1 percent to P20.4 billion as a result of moderated consumer spending.
BDO Unibank Inc. reported a net income of P18.5 billion in the first quarter, up 12 percent from the same period last year on sustained performance of its core businesses.
SMPH reported an 11-percent increase in consolidated net income to P10.5 billion from P9.4 billion in the same period last year.