SM Prime Holdings Inc., one of Southeast Asia’s largest integrated property development firms, is floating up to P70 billion worth of bonds to fund its capital expenditure for the next three years.
In a briefing following its annual stockholders’ meeting at SMX in Pasay City, SMPH Executive Vice President Jeffrey Lim, said the company will apply for the shelf registration of P50 billion to P70 billion in long-term bonds with the Securities and Exchange Commission.
The bonds will have a tenor of at least 10 years and will be issued over a three-year period, with the first tranche to be offered in the third quarter of the year.
“Overall, we are committed to earmark P60-billion annually over the next three years to achieve our development roadmap and income targets by 2018. We are confident that, with your support, we are on our way to realizing our vision,” Hans Sy, SMPH president said.
SMPH intends to double its net income to P32 billion by 2018 from P16 billion in 2014 when the SM group consolidated all of its property businesses under SM Prime.
Sy said that while earnings started a bit slow this year, it began to pick up in February while “April is still very much on track.”
“We are confident that we are on track,” he added.
This year, SM Prime will open new malls in Trece Martires, Cavite; San Jose del Monte, Bulacan; Cherry Congressional; Cherry Antipolo; and East Ortigas.
It will redevelop parts of the Mall of Asia complex, spending about P1.5 billion to increase its retail area to 700,000 square meters– making it the biggest mall in the country.
SMPH chairman Henry Sy Jr. said the company will be expanding product offerings from the core business of affordable condominiums.
“We will be moving up and below that range,” Sy noted, explaining that the company will do mid-rise developments with two to three bedrooms per unit as well as house and lots worth about P1 million for the economic housing segment.
Sy said SMPH is also evaluating areas in the Asean region. “We are still studying our options and see where we will get the most opportunities.”