RETAIL TYCOON HENRY SY?S residential property arm SM Development Corp. is raising up to P5 billion for expansion from the sale of new shares to existing shareholders.

The taipan?s holding company SM Investments Corp., the parent of SMDC, separately announced plans to tap the offshore capital market with a fresh offering of fixed-rate dollar-denominated bonds. SMIC, which debuted in the local bond market earlier this year with its P10-billion retail bond sale, has mandated Barclays Capital and Citigroup to arrange its foreign offering.

SMDC disclosed to the Philippine Stock Exchange yesterday that its board has passed a resolution on a new rights offering ?intended to carry out its growth initiative through landbanking and for other general corporate purposes.?

The determination of the terms and conditions of the rights issue, including the size, entitlement, price and record date, has been delegated to management, the disclosure said. SMDC has appointed BDO Capital and Investment Corp. as its underwriter for the rights issue.

Meantime, SMIC is returning to the offshore bond market but the determination of the timing, pricing, terms and conditions as well as other features of the bond was delegated to management to negotiate and finalize with the lead managers.

?The proceeds of the bonds will be used for general corporate purposes, including refinancing of existing debt obligations,? SMIC vice president for investor relations Corazon Guidote told the PSE.

SMIC last tapped the foreign bond market with the issuance of $350 million in five-year dollar-denominated bonds in July 2008.
For the second half of this year, SMIC?s group-wide capital spending is estimated at P16 billion, in line with full-year targets.

SMIC earlier reported a 14-percent expansion in six-month net profit to P7.4 billion.