SM Group sets up $3B offshore bonds program

The SM Group, owner of the country’s No. 1 bank and shopping mall chain, is looking to bolster growth through a $3 billion European medium-term note (EMTN) program, which marks its biggest fundraising effort to date. 

The offshore fund was jointly established by family conglomerate SM Investments Corp., owner of BDO Unibank and SM supermarkets, and its property group SM Prime Holdings, which developers homes, shopping malls and hotels. 

A source told InsiderPH the group was start issuing notes as early as the third quarter of 2024

Singapore listing 

The group said notes to be issued will be listed on the Singapore Exchange Securities Trading Ltd, the offering circular showed.  

The program diversifies the SM Group’s funding sources and provides an avenue to tap financing amid volatile conditions in the stock market. 

Diversification

Last month, SM Prime president Jeffrey Lim said they will push back their planned $1 billion real estate investment trust listing to 2025 due to poor market conditions. 

The SM Group has tapped HSBC and UBS as arrangers for the EMTN program. The bank dealers are BDO Capital & Investment Corp., China Bank Capital, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered Bank and UBS.