SM Investments raises P5B to build sports arena, Davao hotel

SM Investments Corp. (SMIC)said Thursday it was able to raise P5 billion by floating seven- and 10-year fixed rate corporate notes. The money will finance SMIC’s property projects, including the Mall of Asia’s SM Arena and a 200-room hotel in Davao City. “This Notes issuance is indeed a clear indication of the financing community’s trust and confidence in the SM group," SMIC president Harley Sy said in a statement. SMIC chief finance officer Jose T. Sio added that they “are pleased with the continued vote of confidence of the institutional investors who subscribed to the Notes issue." BDO Capital and Investment Corp., First Metro Investment Corp. and The Hongkong and Shanghai Banking Corp. Ltd. were the joint lead arrangers and bookrunners of the issue. The seven-year notes have a yield of 5.750% while 6.625% is the rate for the 10-year issue. 16,000-seater sports center SMIC vice president for investor relations Corazon Guidote told GMA News Online that part of the notes proceeds will be used to complete the 16,000-seater SM Arena in Pasay City by the second quarter of 2012. The sports complex has gross floor area of 62,000 square meters and seven levels of basement parking, and an adjacent car park building. Total vehicle parking capacity is at 1,490. Provisions for retail and office spaces are part of the project. Davao budget hotel SM Hotel and Conventions Corp. is building the P750-million, 204-room Park Inn by Radisson Davao, which is programmed to open in 2013. The ‘mid-market’ hotel will be built in Davao City’s Lanang district. It will bring to 1,018 the number of rooms SM Hotels will have in its portfolio. “Davao is an ideal location for such an undertaking because of its robust economy, vibrant population, and excellent infrastructure including its international airport," according to SM Hotels and Conventions president Elizabeth T. Sy. SMIC’s other hotel projects are Taal Vista, Radisson Blu, and Pico Sands. — VS, GMA News