Philippine conglomerate SM Investments Corp and its property unit SM Prime Holdings Inc. are venturing into the overseas market with a debut $3 billion Euro Medium Term Note (EMTN) program, according to company officials on Tuesday. This marks the largest issuance of its kind by a Philippine company.
SM Investments Vice Chairperson Teresita Sy-Coson told Reuters that the funds from the EMTN program would be earmarked for the companies' future needs. "We do not need it now, but for the future," she added.
Sy-Coson mentioned that the companies, owned by the Philippines' wealthiest family, aim to issue the entire $3 billion over the next three to five years. The conglomerate has established an entity in Singapore to facilitate the issuance of the notes.
The EMTNs will finance various requirements, including expansion initiatives and debt repayments, as highlighted by SM Prime President Jeffrey Lim in remarks to Reuters.
EMTNs are debt securities issued and traded internationally.
In 2024, SM Prime has allocated 100 billion Philippine pesos ($1.74 billion) for capital expenditure, intending to open four new shopping malls and introduce 8,000 to 10,000 residential units.
SM Investments and SM Prime are the country's two most valuable companies by market capitalization, with interests spanning banking, retail, property, shipping, and leisure and gaming sectors.
BDO Unibank, the Philippines' largest lender by asset terms and a subsidiary of SM Investments, initiated a $2 billion EMTN program.