SMIC to issue P30 B bonds

SM Investments Corp., the listed conglomerate of the Sy Group, will issue up to P30 billion worth of bonds in the next three years.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, SMIC said it filed a registration statement in the aggregate amount of P30 billion under the Securities and Exchange Commission’s shelf registration program for a period of three years.

Of the amount, SMIC will initially issue P10 billion with an oversubscription option of up to P5 billion.

Philippine Ratings Services Corp. (PhilRatings) has assigned a PRS Aaa rating to this initial tranche.

PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.

SMIC posted a net income of P9 billion in the first quarter, down 16 percent partly due to the Luzon-wide enhanced community quarantine imposed in the middle of March as a result of the pandemic.

This despite an increase in consolidated revenue of P111.2 billion from P109 billion.

Banks contributed 46 percent of SMIC’s net income, while property and retail added 44 percent and 10 percent, respectively.

Property arm SM Prime recorded a consolidated net income of P8.3 billion, down five percent while BDO Unibank posted a net income of P8.8 billion compared to P9.8 billion previously.

China Bank saw its net income increase 19 percent to P2.2 billion, driven by sustained growth of its core businesses.