SMIC raises P5B from notes issue

MANILA, Philippines - SM Investments Corp. (SMIC) has raised P5 billion from a recent issuance of seven- and 10-year fixed-rate corporate notes, the company said in a statement.

The notes were priced at yields of 5.75 percent for the seven-year tranche and 6.625 percent for the 10-year tranche.

BDO Capital and Investment Corp., First Metro Investment Corp. and The Hongkong & Shanghai Banking Corp. Ltd. were the joint lead arrangers and bookrunners for the issue.

Encouraged by the strong market reception, SMIC president Harley T. Sy said “The notes issuance “is indeed a clear indication of the financing community’s trust and confidence in the SM Group.”

“We are pleased with the continued vote of confidence of the institutional investors who subscribed to the notes issue. We congratulate the joint lead arrangers for successfully arranging the deal,” SMIC chief finance officer Jose T. Sio added.

Sio earlier said the company is likely to meet its net income growth target of 12 percent this year from P18.4 billion in 2010. Revenues are forecast to rise to at least P200 billion from P179 billion the previous year.

In the first half this year, SMIC reported a 12 percent hike in net profit to P9.64 billion, aided by high estate sales and the sustained growth of its banking units.

SMIC is primarily engaged in the shopping center business through SM Prime Holdings Inc., property development (SM Development Corp.), and financial services (Banco De Oro Unibank and China Banking Corp.)

It also has a 17.9-percent stake in Atlas Consolidated Mining & Development Corp.

SMIC has set a P47-billion capital expenditure program this year, up from P40.6 billion the previous year.

To ensure continued growth, SMIC is exploring opportunities in Public-Private Partnerships (PPP) projects being initiated by the government.