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By Katrina Mennen A. Valdez, Reporter
SM Investments Corp. (SMIC) said it would borrow
anew to refinance its outstanding debt.
In a disclosure to the Philippine Stock
Exchange, the holding company of the Sy family of SM fame said its
board of directors approved the issuance of fixed-rate bonds. The
conglomerate tapped UBS AG as lead manager of the IOU sale.
SMIC said it would disclose further details on
the issue size, the pricing, as well as the terms and features of
the bond once its board decides on those matters. The company said
its management would negotiate and finalize the said details with
the Swiss-based lead manager.
SMIC said the proceeds of the bond issuance will
be used for general corporate purposes including the refinancing of
existing financial obligations.
The company earlier said it would add nine
supermarkets to its present 29, as well as two hypermarkets to the
existing 11 this year. The SM group would also be increasing the
number of its department stores from 31 to 34.
For this year, SMIC would spend about P2 billion
for its retail business out of the total P25 billion the group
earmarked for its capital expenditures. This amount is P5 billion
more than last year’s spending program, with about P15.6 billion
of the total going to its property development, P6 billion to its
mall business, and P2.3 billion to its banking arm.
About 40 percent of the group’s financing
requirements would be borrowed from foreign and local sources but
the mix would depend on the market situation. Jose Sio, SMIC chief
finance officer, however said the company is leaning toward peso
loans.
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