SM to raise P70B in fresh equity
SM Prime Holdings Inc., the country’s largest integrated property developer plans to raise up to P70 billion in fresh capital over the next three years from issuance of retail bonds.
SM Prime executive vice president Jeffrey Lim in an interview at the sidelines of the company’s annual stockholders meeting said the company is finalising plans to file a shelf registration with the Securities and Exchange Commission for the issuance of between to P50 billion to P70 billion worth of retail bonds to be issued over a period of three years.
Lim said the company will initially issue P10 billion in the third quarter of 2016.
Proceeds from this planned bond offering will be used finance the company’s aggressive expansion plans to help it achieve its target to double its net income to P32 billion by 2018.
“We are committed to earmark P60 billion annually over the next there years to achieve our development roadmap and income targets by 2018,” SM Prime president Hans T. Sy said.
Meanwhile, Lim said that it will launch 2,000 house and lots units this year, which represents less than 20 percent of the 12,000 to 15,000 total residential units it plans to launch this year.
Depending on the demand, Lim said the company could ramp up the launch of house and lot next year to 5,000 units.
Lim said the the company is entering the house and lot segment of the market as part of the company’s strategy of diversifying its product offerings.
Aside from venturing into subdivisions, the company is also planning to venture into mid-rise developments and high-end residential to