SMIC eyes P50-B retail bond float before yearend

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SM Investments Corporation (SMIC) intends to issue P50 billion worth of retail bonds before the end of the year to fund the expansion of its businesses, a company official said on Wednesday.

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On the sidelines of the Miriam College Henry Sy Sr. Innovation Center turnover ceremony, SMIC chief finance officer Jose Sio told reporters the firm is filing for a P50-billion shelf registration program.

“There’s a plan to issue retail bonds before the end of this year,” Sio said.

The company is still working on the details of the issuance, which needs to be approved by the Securities and Exchange Commission and the Philippine Stock Exchange, he said.

The company is looking at seven- or 10-year bonds. “The Philippine market is liquid, we would like to see a tenor of about 7, 10 years,” according to the company official.

The proposed SMIC bond offering is different from an earlier shelf registration by property development arm, SM Prime Holdings Inc.

SM Prime recently issued P10 billion worth of retail bonds to fund its provincial expansion.

“SMIC will be more for supporting our subsidiary for the capitalization of our subsidiary or the expansion of our subsidiary. And we also have a group, the non-core business group for investments,” Sio said.

Its core businesses include retail, property development and banking, while the non-core businesses include mining, entertainment and tourism.

Its hotel development arm, SM Hotels and Convention Centers Corporation is looking to put up more projects in the next three years.

In a separate interview, SM Hotels President Elizabeth Sy told reporters that the company plans to build three to four hotels and three to four convention centers. Each hotel would cost around P500 to P600 million to develop.

SM Hotels plans to expand outside of Metro Manila.

“Well I know, that we will be going outside Metro Manila into the South like Iloilo. [That’s] one of the plans after SM City North Edsa,” she said.

On Wednesday, SMIC turned over the Miriam College Henry Sy Senior Innovation Center – the country’s first integrated marketspace – which was donated to the school by the Henry Sy Foundation.

The center features eight connected and creative learning spaces: Fabrication Laboratory, Instrumentation Laboratory, Engineering and Electronics Laboratory, Multi-Media Laboratory, Performance Laboratory, Kitchen and Cafe, Playloft and Innovatrium.

Sio noted the Sy family donated P100 million to build the facility.

“Aside from this, we have previously donated a school in UP, both in the UP campus in Diliman and UP in Bonifacio. Then of course we have the first donation which is the De La Salle University … And also in Cebu, we have … donated an auditorium for the Sacred Heart school,” he said.

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