Initial issuance seen at P20B
LISTED conglomerate SM Investments Corp. (SMIC) said on Wednesday its board of directors has approved a plan to raise P50 billion in the bond market over a span of three years to fund the group’s expansion plans.
SMIC said the P50-billion fixed rate bond program will be registered under the Securities and Exchange Commission’s (SEC) shelf registration program.
Under shelf registration, companies can seek a one-time approval for their massive fund-raising programs and then offer the bonds in tranches over a three-year period.
“Initial issuance under this program is expected later this year in the amount of P15 billion, with an oversubscription option of up to P5 billion,” SMIC said in a statement.
SMIC chief financial officer Jose Sio told reporters earlier this month that the group would likely issue bonds with seven- to 10-year tenors.
The company has yet to file an application with the SEC for shelf registration.
SMIC’s property subsidiary SM Prime Holdings Inc. also has a separate P50-billion debt raising program under the SEC’s shelf registration scheme.
Sio also earlier said that the company will be supporting the “capitalization” or “expansion” of its core subsidiaries and make investments in its non-core businesses.
SMIC’s core businesses are retail (SM Retail), real estate (SM Prime), and banking (BDO Unibank Inc.), while its non-core businesses include investments in mining, entertainment, and tourism.