CHEMICAL trader SBS Philippines Corp. on Monday said it secured a P2.5-billion term loan from Security Bank Corp., to be used to bankroll purchases of property-related investments.
“The loan from Security Bank will ensure we have the resources available to take advantage of opportunities to acquire properties and property-related targets that become available. Currently, the group has already identified certain property investments, which it hopes to close within the first half of 2017,” said Victorina Ladringan, the company’s chief investments officer.
The company said it believes the business prospects of property investments have a potential and sees such investment strategy to contribute materially to the company’s earnings on a sustainable and long-term basis.
For 2016, SBS reported consolidated revenues of P1.98 billion and a consolidated net income of P1.02 billion.
The company’s board also approved a new share-buyback program with a volume of up to another P200 million. The new buyback program replaces the previous mandate, which has already been fully expended, it said. The share repurchases will be undertaken in the open market through the trading facilities of the Philippine Stock Exchange and will run from April 18 until the amount earmarked for the program has been fully utilized.
“The program will be funded by internally generated funds from the company’s unrestricted retained earnings and is not expected to affect the company’s existing or prospective projects and dividend policy,” it said.
The repurchased shares will be held as treasury shares.