The Securities and Exchange Commission (SEC) has approved SM Investments Corp.’s (SMIC) P30-billion shelf registration of fixed-rate bonds, a third of which will be offered by the company immediately.
The SEC has approved the said shelf registration, which should be issued in tranches within three years, during its en banc meeting on September 15.
SMIC will initially offer some P10 billion of fixed-rate bonds, some P5 billion of which is its principal offer while the rest is for the oversubscription option.
Net proceeds from the offer at about P9.88 billion will refinance existing debt obligations of the company.
The first tranche will comprise 3.5-year Series H Bonds due in 2024 to be issued in minimum denominations of P20,000 and in multiples of P10,000.00 thereafter, and traded in denominations of P10,000 at the Philippine Dealing and Exchange Corp.
It will be offered to the public at face value.
BDO Capital and Investment Corp., China Bank Capital Corp., BPI Capital Corporation, First Metro Investment Corp. and SB Capital Investment Corp. were picked as joint lead underwriters.
SMIC, the Sy family’s holding firm, said its net income in the first half slid 69 percent to P7.1 billion, from P23 billion last year, as the lockdowns affected its banking, retail, and mall operations.
Consolidated revenues fell 21 percent to P185.5 billion, from P233.7 billion recorded a year ago.
The property and banking businesses accounted for 61 percent and 34 percent of net income, respectively, while retail contributed 5 percent.
“Our half year financial results are within our overall expectations, given the context of the lockdown due to the Covid-19 outbreak which had a greater impact in the second quarter,” SMIC President and CEO Frederic C. DyBuncio said.
“The results also reflect the group’s continued financial prudence and conservative balance sheet after our banks made substantial provisions for potential customer delinquencies.”