[ manilastandardtoday.com ] September 10, 2009
by Jenniffer B. Austria
SM Development Corp., the property unit of retail tycoon Henry Sy, will conduct a stock rights offering to raise as much as P5 billion to finance construction of several projects.
SM Development said in a disclosure to the stock exchange that its board approved the offering of shares to stockholders to achieve the company’s growth targets, including land banking.
The company will finalize the terms and conditions of the rights issue, including size, entitlement, price and record date.
SM Development appointed BDO Capital and Investments Corp. as lead underwriter for the offering.
Share price of SM Development yesterday closed at P4 a share, down P0.05 from Tuesday’s close.
The company has seven on-going projects—Chateau Elysee, a six-cluster mid-rise condominium project in Parañaque City, Berkeley Residences in Katipunan Road across Miriam College, Grass Residences beside SM City North Edsa, Sea Residences near the Mall of Asia Complex in Pasay City, Field Residences in Sucat, Parañaque City and Lindenwood Residences and Mezza Residences across SM City Sta. Mesa.
Other projects scheduled to be launched in the second half of this year are Princeton Residences near the Gilmore LRT-2 Station along Aurora Boulevard in Quezon City; Sun Residences, near Welcome Rotonda in Quezon City; Mars Residences along Jupiter Street in Makati City; Jazz Residences in Mandaluyong City; Tree Residences along Felix Avenue in Cainta, Rizal; and Wind Residences in Tagaytay City.
Meanwhile, SM Investments Corp., the holding company of the Sy group, announced that its board of directors approved the issuance of fixed-rate dollar-denominated bonds.
SM Investments said in a separate disclosure to the Philippine Stock Exchange that it tapped Barclay Capital and Citi as lead managers for the issuance.
The conglomerate did not say how much it would generate from the dollar-denominated bond offering.
“The determination of the timing, pricing, terms and conditions, and other features of the bonds is delegated to management to negotiate and finalize with the lead managers,” SM Investments said.
The company plans to use proceeds of the bonds for general corporate purposes, including refinancing of existing debt obligations.
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