SAN FERNANDO-PAMPANGA | SM City San Fernando [com]

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SM Prime taps P5B financing

SM Prime Holdings Inc. yesterday said it has tapped a P5 billion, five-year floating rate note facility to finance capital expenditure and other general corporate requirements.

The issue was solely arranged by investment bank First Metro Investment Corp. and was fully subscribed to by Allied Bank, Bank of the Philippine Islands, and Metropolitan Bank and Trust Co.

"The five-year floating rate note is SM Prime’s first capital market issuance for 2011. The very positive response of financial institutions to the company’s issuance manifests the market’s confidence in SM Prime’s creditworthiness, stability, and growth potential," said Hans T. Sy, SM Prime president.

SM Prime earlier reported that profit last year reached P7.9 billion, up 12 percent from the P7 billion recorded a year earlier. Consolidated revenues reached P23.7 billion, up 15.6 percent from P20.5 billion.

For 2011, SM Prime plans to open three malls – SM City Masinag in Antipolo City, SM City San Fernando in Pampanga and SM City Olongapo in Zambales.

The company is also set to expand two of its existing malls – SM City Davao and SM City Dasmariñas in Cavite.

SM Prime is eyeing to spend P20.1 billion as capital expenditure for the construction of malls both locally and abroad. SM Prime has allocated P9 billion for the construction of malls in Chongqing and Zibo and the acquisition of land in Tianjin in China.

About P11 billion is earmarked for the development of new malls in Masinag, Cavite; San Fernando, Pampanga; Dasmariñas, Cavite; Commonwealth in Quezon City; Cebu; Sucat, Parañaque; and Apalit, Pampanga, which will add 400,000 square meters of gross leasable area by the end of 2011.

For 2012, SM Prime eyes the opening of new malls in Lanang in Davao City and General Santos City in South Cotabato.

By the end of 2011, SM Prime will have 47 malls in the Philippines and in China with an estimated combined gross floor area of 5.7 million sq.m.

http://www.sunstar.com.ph/davao