SMPH prices planned P35-b bond offering

By Jenniffer B. Austria

PROPERTY developer

SM Prime Holdings

Inc. set the interest rates for its planned P35billion peso-denominated fixed-rate bond offering.

SMPH said in a stock exchange filing Thursday the P35-billion bond offering in three tranches would consist of P25 billion as the base offer and additional P10 billion for oversubscription.

The interest rate for Series S is at 6.2069 percent per annum due 2025, Series T at 6.2151 percent per annum due 2026 and Series U at 6.3275 percent per annum due 2029, it said.

The offering period will be from May

8 to 12, 2023. The bonds will be issued and listed on the Philippine Dealing & Exchange Corp. on May 23.

SMPH chief finance officer John Nai Peng Ong said the company would use the proceeds to finance expansion plans.

“The fifth tranche of SM Prime’s P100-billion debt securities program will be used in pursuance of our expansion plans that will provide the company

US firm teams up with local miner to set up nickel processing facility

By Othel V. Campos

A US company teamed up with a local mining firm to set up a nickel processing facility in the Philippines, according to Department of Trade and Industry officials who are part of the Philippine trade mission to the US. Trade Secretary Alfredo Pascual said in a briefing late Wednesday night they could not disclose the details of the agreement which is between the two private firms.

“We can only provide the enabling environment so that they can do it. If we can provide incentives to allow the proposals or projects [to] move in a certain direction, we will do so,” he said. The DTI is in talks with other nickel processing proponents from Europe, a stronger foothold in the key areas of the country,” Ong said.

China and Japan.

Pascual said nickel processing is a good economic mover that could create 10 to 20 times in added value compared to nickel ore exports. He said the Philippines is pushing for a critical minerals agreement with the US.

“We want the further processing of these raw minerals so that we can produce metals like nickel that are essential ingredients or components of batteries needed for electric vehicles. The whole world is moving toward EV and the supply of critical green metals like nickel. Nickel will become very much in demand,” he said.

The proposed CMA is an ongoing initiative of the Philippines, as it continues to engage the US to create a meaningful partnership on nickel processing, Pascual said.

SMPH earlier said it would spend P80 billion in capital expenditures this year to build more malls and residential projects. The Series S, T and U received a rating of PRS Aaa from Philippine Rating Services Corp. PRS Aaa rating is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and the issuing company ‘s capacity to meet its financial commitment on the obligations is extremely strong.

The bonds will be made available to investors through joint issue managers BDO Capital & Investment Corp. and China Bank Capital Corp., which are also joint bookrunners and joint lead underwriters.

SMPH tapped BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as joint underwriters for the transaction. SMPH earlier disclosed plans to raise a record $1 billion from its real estate investment trust offering in the second half of 2023.

SMPH president Jeffrey Lim said the company had started the process of incorporating an REIT unit that would initially own 12 to 15 malls in the Philippines.

“Hopefully we can launch the REIT by second half of the year subject to market conditions,” Lim said.

SM Prime owns 82 malls in the Philippines and seven malls in China. Of the 82 Philippine malls, 30 to 35 are fully mature, according to the company. “We can initially transfer 12 to 15 mature malls into the REIT, and then the rest will be for the future for the growth of SM REIT,” Lim said.

By Darwin G. Amojelar

PLDT Inc. said Thursday net income slightly dropped in the first quarter amid soaring inflation and seasonal dip in consumer spending.

The country’s largest telecom company said net profit amounted to P9.015 billion in the first quarter, down from P9.07 billion in the same period last year. Core income, excluding the impact of asset sales and Voyager Innovations, reached P8.6 billion, up 5 percent from the same period last year.

“Because of soaring inflationary pressures, we must strive to attain cost-efficiency and operational excellence in order to provide leveled-up customer experiences while keeping our products and services affordable for our subscribers,” PLDT and Smart president and chief executive Alfredo Panlilio said.

“We continue with our transformation initiatives to strengthen our core business as we plan for our growth strategies,” he said. Service revenues rose 2 percent in the first quarter to P47.1 billion, led by Home and Enterprise. Data and broadband, which grew by 6 percent to P38.5 billion, contributed 82 percent of consolidated service revenues.

ACEN’s net income jumped to P2b in Q1

ACEN Corp., the listed energy platform of the Ayala Group, said Thursday net income attributable to equity holders of the parent company jumped to P2 billion in the first quarter from P405 million a year earlier.

ACEN said in a disclosure to the stock exchange increased borrowing costs and overhead tempered income growth as the company accelerated its expansion of renewable projects.

“After weathering several challenges in 2022, we began the year with encouraging results brought about by the growth in generation output,” ACEN president and chief executive Eric Francia said.

Consolidated revenues climbed 23 percent in the first quarter to P9.1 billion as a result of higher net generation amid better wind resources and the commissioning of new power plants in the Philippines and in Australia.

“We expect to grow our net selling merchant position further, with more capacity scheduled to come online in the second half of the year. As our renewable energy investments begin to bear fruit, ACEN is now on a stronger footing as we continue working towards our aspiration of reaching 20 gigawatts of renewables by 2030,” said Francia. Alena Mae S. Flores

KMC opens co-working space at SM North EDSA

KMC Solutions inaugurated a co-working space at SM North EDSA Tower 1 in Quezon City on April 27, 2023, with plans of opening two more sites at Jollibee Tower in Pasig City and Lexmark at Cebu Business Park in May.

Each site offers state-of-the-art tech and business facilities and fully-equipped social amenities, making hybrid work more achievable and sustainable for Filipino businesses.

SM North EDSA Tower 1 is KMC’s first new flexible office development in 2023, with 553 seats across 2,449 square meters of floor space. Located close to transit hubs, pedestrian walkways, shopping malls, and restaurants, the new flexible workspace in Manila offers a flexible working environment with hot desks and retractable outlets alongside a pantry, mind and body training room, shower facilities and an ice cream machine.

The Jollibee Tower on Emerald Street, Ortigas, will offer 741 seats over 1,869 sq .m. of floor space, while the 5,590-sq.m. space at Lexmark, a PEZA-accredited building, will have 1,215 seats. KMC’s total footprint now spans across 27 buildings, totaling 106,442 square meters.

Entravision executives unveil Asian expansion

A TOP executive of Entravision, a leading global advertising, media ad-tech and commerce solutions provider disclosed the company’s plan to expand in Asia.

Entravision chief digital, strategy and accountability officer Juan Saldivar met with members of the Philippine press as part of a business tour within the AsiaPacific region, shared global industry insights and discussed the company’s plans for Asia.

Entravision in APAC services over 700 clients in 11 markets with an experienced team of over 120 specialists focused on helping brands grow online through mobile app growth, social media, performance marketing and retail media solutions.

“In the Philippines, we are thrilled to serve hundreds of extraordinary agencies and brands. Our numbers show more than 100 well connected consumers with a full smartphone penetration. The Philippines is a thriving market with hyper-local solutions and a rampant digital advertising industry north of 500 million dollars,” said Saldivar.

Entravision has strategically evolved into a digital powerhouse, expertly connecting brands to consumers in Asia, Europe, Africa, the US, and Latin America. “Entravision is committed to investing in Asia and expanding our presence in the region to help empower local and regional businesses through innovative and effective advertising solutions. I’m proud to lead the company’s exciting journey in the region,” said Pieter-Jan de Kroon, president for Entravision Asia.