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SM
Investments Corp. (SMIC), the listed conglomerate of
mall magnate Henry Sy, continues to see opportunities in
times of crisis, as seen in the continuing expansion
within Mall of Asia.
Hans Sy,
one of the sons of the patriarch and president of SM
Prime Holdings Inc. (SMPH), said they continue to carry
out expansion projects, as there remain “saving graces”
in the economy—citing nonstop remittances from overseas
Filipino workers (OFWs) and expansion of the business
process outsourcing (BPO) sector.
“I think
consumer spending has become more concentrated here.
Some people, instead of going abroad to shop, opt to
just stay here,” he said.
SMIC,
through SMPH, operates the largest chain of shopping
malls in the country, or 33 by the end of the year.
As far
as the MOA complex is concerned, Sy said there is a plan
to build a second E-Com building to serve requirements
for office spaces as well a 15,000-seater sports
stadium, which can also be a venue for concerts. More
parking spaces will likewise be built.
The
E-Com building will consist of 14 floors. The sports
stadium, on the other hand, will sit on a 2-hectare lot
and will be cylindrical in shape. It will be ready by
2010.
Construction for all will begin this year.
SMIC
said earlier it will sell fixed-rate bonds to raise
funds to refinance existing loan obligations.
In a
statement, the company, which holds interests in retail,
property development and financial services, said it has
appointed UBS AG as the lead manager for the issuance.
“The
determination of the pricing, terms and conditions, and
other features of the bonds are delegated to management
to negotiate and finalize with the lead manager,” it
said.
It added
that a subsequent disclosure to corporate regulator
Securities and Exchange Commission and Philippine Stock
Exchange (PSE) will be made as soon as the board
approves the final issue size, pricing, terms and
conditions and other features of the bonds.
SMIC did
not indicate how much of its debts will be refinanced.
Based on its filing with the PSE, its bank loans
amounted to P5.22 billion at the end of the first
quarter.
A
fixed-rate bond is a long-term debt paper that carries a
predetermined interest rate payable at specified dates
before bond maturity.
In
February 2007, SMIC successfully launched its 5-year
convertible bonds. The transaction was expanded to $300
million, including the greenshoe option from the
original offer size of $200 million.
Proceeds
from the offering were used to refinance a portion of
its maturing obligations and for general corporate
purposes. |
