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SHOPPING
mall developer SM Prime Holdings Inc. (SMPH) has
generated P4 billion from the issuance of a five-year
floating rate note facility. The transaction was
completed on Monday.
In a
statement Tuesday, the company said the deal was
arranged by First Metro Investment Corp. with SB Capital
Investment Corp. as colead arranger.
“The
facility was oversubscribed with seven primary
institutional lenders subscribing to the issue. The
strong response by the market to this financing
illustrates the high credit quality of SMPH, as well as
the local market’s confidence in the company,” it said.
The
first drawdown, amounting to P3.5 billion, will be on
June 18, while the balance of P500 million can be
obtained on July 9.
SM Prime
said the proceeds will help fund its capital
expenditures and general corporate requirements this
year. The company is spending P7 billion to build three
new malls in Bacolod, Taytay and Muntinlupa, as well as
expansion of malls in Cebu, Pampanga, Fairview and that
of the Mall of Asia.
From
2007 to 2011, SM Prime plans to spend P35 billion to
fund at least 35 new malls throughout the country and
expand existing businesses.
In a
previous interview, president Hans T. Sy said the
programmed capital expenditure is consistent of its
expansion growth.
“The
five-year capex does not include yet the land
acquisitions,” he said.
Jeffrey
Lim, SM Prime executive vice president, said the
P35-billion capex would be equally financed by
borrowings and internally generated cash.
SM Prime
remains the major income contributor of SM Investments
Corp., the holding company controlled by the country’s
wealthiest man Henry Sy.
At the
end of the first quarter, its net income amounted to
P1.5 billion, up 11 percent from a year earlier on
higher mall rentals booked from newly opened stores.
Gross
revenues, on the other hand, rose 24 percent to P3.6
billion, while rental income from the malls, which
accounted for 83 percent of total revenues, grew 26
percent to P3 billion.
For the
full year, the company’s net profit would likely
increase between 10 percent and 15 percent on the back
of higher consumer spending and continued improvement in
the country’s economy. |
