SMIC to issue $200-M 5-yr convertible shares

SM Investments Corp. (SMIC) has approved the issuance of $200- million worth of five-year convertible bonds to refinance a portion of its maturing obligations and for general corporate purposes.

In a statement released yesterday, SMIC said the details of the terms and conditions of the convertible bonds will be discussed and finalized with the underwriters.

SMIC has tapped Citigroup and Macquarie Securities (Asia) Ltd. as joint lead managers for the issue.

The company earlier said it was planning to borrow P10 billion this year to bankroll the continued expansion of SM Mall of Asia, the establishment of an integrated tourism and residential resort complex and other property development projects, and the purchase of a majority stake in Equitable PCI Bank.

Of the total amount, P4 billion will go to the payment of a portion of the acquisition of the EPCIBank stake, P2.5 billion for the Manila Bay City project, P2 billion for the development of a 5,700 hectare property in Nasugbu, Batangas into an integrated network of resort communities, and P500 million for the expansion and refurbishment of the Taal Vista Hotel.

The balance will be used for the development of other tourism and housing projects.

SMIC has earmarked about P20 billion for its capital expenditures this year, which include the expansion of its mall, hypermarket and supermarket operations.

Around P7 billion will be spent this year to put up new malls and refurbish three existing ones. Another P7 billion will go to the development of Hamilo Coast.

Among the new malls to be put up are in Bacolod, Taytay, Muntinlupa, and Bulacan. It will also build a strip of retail outlets to be called SM Esplanade within the Mall of Asia.