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Philippines conglomerate SMC Global’s dollar perps callable in 2026 rallied by over 2.8 points. The company reported a consolidated net income of PHP 44.7bn ($800mn), up 67% YoY with its EBITDA rising to PHP 205.3bn ($3.7bn), up 24% YoY. Revenues were weaker at PHP 1.45tn ($26bn), down 4% YoY. SMC noted that tight oil prices which impacted performance of its power unit, hurt overall revenue, whilst being partly offset by strong volume of food and infrastructure units. SMC added that Philippines’ healthy macro fundamentals alongside the company’s strategy will augur well for its growth momentum in 2024. The company also struck an MoU with JBIC to strengthen the partnership between the two.
A report by Bloomberg Intelligence noted that the recently announced $3.3bn gas deal of SMC with Aboitiz Power and Meralco PowerGen will see liquidity risks diminish for SMC, and could cover debt and leases due over the next 12 months. However, they do observe that SMC might still need to raise funds to redeem the $3.3bn of perps callable by 2026, as net proceeds from its gas deal may only be up to $2bn.
Both of SMC’s perps callable in 2026, i.e., the 5.45% Perp and 5.7% Perp were up 4.4 points and 2.8 points , to trade at 90.6 and 93.8, yielding 9.45% and 9.42% respectively.