SM Investments Corp. (SM) on Wednesday registered a planned debt securities program for up to P30 billion within three years.
In a report to the Philippine Stock Exchange, the Sy-led conglomerate said it submitted the registration statement with the Securities and Exchange Commission.
SM intended to issue P10 billion in bonds with an oversubscription option of up to P5 billion as an initial drawdown from the program.
“Philippine Ratings Services Corp. (PhilRatings) assigned a rating of PRS Aaa to this initial tranche,” SM said.
Highest grade for float
“PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong,” it added.
SM registered 16 percent lower net income in the first quarter of 2020, to P9 billion, partially due to the impacts of COVID-19 and the enhanced community quarantine.
Ability to adapt
Still, the conglomerate said its strong balance sheet, capabilities and partnerships allow it to be flexible in adapting to changes in consumer behavior.
SM’s property unit, SM Prime Holdings Inc., earlier on said it is allotting P100 million to increase its e-commerce presence as the pandemic presents unprecedented growth for the industry.