SM: ‘We’re lender’ not airport contractor

SM Group, which controls the largest bank in the country, has no intention of collaborating with Ramon S. Ang’s San Miguel Corp. (SMC) and its partners to redevelop Ninoy Aquino International Airport (NAIA). 

Rather than becoming actively involved in the airport’s expansion, BDO Capital & Investment Corp., the investment arm of BDO Unibank Inc. under SM Investments Corp. (SMIC), will continue fulfilling its role as a lender to provide financial support for the P122.3-billion project. 

The SMC SAP & Co. consortium, now called the New NAIA Infrastructure Corp., has tapped BDO for a loan package to fund the project.

“There is no problem (with the loan financing) so far and I think they have the substance.” 

“We believe that we have to improve NAIA. So we are helping,” SMIC vice chairman Teresita Sy-Coson said during a spot interview at the sidelines of the 2GO MV Masigla vessel launch last week. 

Asked if the group has any interest in acquiring interest in the consortium, Sy-Coson said: “No, we are just a bank, a lender.”

Raising funds

To recall, no less than SMC president and CEO Ramon S. Ang assured during the NAIA concession agreement signing last March that the company has sufficient financial warchest to support the NAIA venture.

Last week, SMC sought the approval of the Securities and Exchange Commission (SEC) to issue P20-billion fixed-rate bonds to raise funds for its airport developments. 

SMC said it submitted an Amended Registration Statement and Preliminary Offer Supplement to the SEC last Monday.

The company’s issuance, which is part of the second tranche of its bond program, will have a principal amount of P15 billion and an oversubscription of up to P5 billion.