SMIC allots P80-B capex for 2014

by Jon Carlos Rodriguez,

Posted at Mar 28 2014 09:41 AM | Updated as of Mar 29 2014 01:51 AM

MANILA, Philippines – Sy-led SM Investments Corp. (SMIC) will spend an estimated P80 billion for its capital expenditures this year, officials said Thursday.

A bulk of the capital expenditures will be allotted for SM Prime Holdings Inc., which is the country’s largest mall operator.

“On a holding company level, it’s about P80 billion, of which P70 billion is for SM Prime, and then SM Retail is about P5 billion to P6 billion, and the rest is the banks,” SMIC investor relations chief Cora Guidote told reporters.

SM Prime is the holding company for SM’s real estate projects under SM Development Corp.

SM Prime is also considering raising as much as P20 billion from a retail bond offering towards the second quarter or second half of the year, SM Prime chief finance officer Jeffrey Lim said.

“The plan to tap the equity market is shelved for now, given the price of SM Prime. So we will work on other alternative funding options especially on the debt side,” he said.

Lim said the bonds will be offered with tenors of 7 to 10 years.

“Apart from the peso, we are also looking into a syndication of US dollar for our China requirements of up to $300 million,” he added.

SM currently has 5 stores in China, with another store expected to open this year. It has 48 stores in the Philippines.

SMIC is the holding company for its real estate, retail and banking businesses.