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SMIC seeks SEC nod to raise P30 billion from bond sale

Conglomerate SM Investments Corp. plans to raise up to P30 billion from the issuance of fixed-rate peso bonds, documents show Wednesday.

SM Investments filed a registration statement with the Securities and Exchange Commission for a proposed P30-billion bond shelf registration program to be issued over a three-year period.

It said it would issue up to P10 billion for the first tranche, with an oversubscription option for another P5 billion.

SM Investments plans to use the proceeds of the bond offering to refinance some of the company’s maturing obligations and other general corporate purposes.

Philippine Ratings Services Corp. assigned a rating of PRS Aaa to the tranche. 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.

SM Investments, which has investments in banking, real estate and retail, plans to spend between P94 billion and P98 billion in capital expenditures this year.

The group allocated P80 billion to fund the shopping mall and residential projects of real estate subsidiary SM Prime Holdings Inc.

Banking units BDO Unibank and Chinabank will spend P9 billion to P12 billion in capital expenditures for this year primary for branch expansion and IT enhancement programs while it retail business will spend P5 billion for store network expansion and renovations.

The conglomerate earlier said it would strengthen its digital offerings to adapt to changing consumer behavior amid the coronavirus pandemic.

SM malls and retailers initiated click-and-collect, curbside pick-up, smartphone messaging communities for deliveries and concierge style personal shopping via social media in response to increased customer needs.

“This pandemic has made us focus even more on two important things for our customers: convenience and safety. And two things for ourselves: adaptability and transformation. We have been improving both our online and physical experience and operations across the group—and building new ways to serve customers: from banking, to retail, malls, and property,” SM Investments vice chair Teresita Sy Coson earlier said.

Topics: SM Investments Corp. , peso bonds , Securities and Exchange Commission
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