SMIC to remain active in debt mart

MANILA, Philippines - Mall, banking and retail conglomerate SM Investments Corp. (SMIC), fresh from raising P15 billion through long-term bonds, will remain active in the debt capital markets as it prepares for expansion and acquisition opportunities, a top company official said.

The investment unit of the Philippines’ richest man Henry Sy will secure fresh capital on an opportunistic basis ahead of the increase in interest rates and tighter liquidity, SMIC chief finance officer Jose Sio said.

“We are done with our fundraising but we are open for any opportunity,” Sio told reporters on the sidelines of the company’s bond listing in the Philippine Dealing and Exchange Corp., the country’s trading platform for fixed income securities.

“The business community expects that interest rates will go up and liquidity will also be restricted over time. You have an opportune time to raise funds now, [and] many businessmen are also pre-funding their requirements,” he added.

SMIC listed yesterday P11.66 billion and P3.33 billion fixed-rate bonds due 2021 and 2024, respectively. The seven-year bonds carry an interest rate of 5.2958 percent per annum while the 10-year debt papers will yield 5.6125 percent per year.

Proceeds from the recent bond issuance will support debt repayment and fund various expansion projects.

Future fundraising programs will give the company leeway for further expansion projects and acquisition opportunities, Sio said.

“Banco De Oro (BDO) and Chinabank are open to any potential merger or acquisition,” Sio said. SM Retail Inc. is also looking to expand its footprint by acquisition, he added.

Aside from raising fresh capital, tapping the debt markets will allow SMIC to remain on the radar of investors, Sio said.

SMIC is also into shopping malls and property development  (SM Prime Holdings Inc.), and hotels and conventions (SM Hotels and Conventions Corp.).