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Banco de Oro Universal Bank., the country’s second largest bank, intends to tap the call option on its 0-million Tier II notes in July 2008, Nestor Tan, bank president said.  He said the bank, worth about .2 billion, also has 0 million debt falling due in February which the lender may or may not refinance, depending on its funding requirements. 

Tan also said that the bank is likely to post net profits of P7 billion this year, up from P6.3 billion last year, on robust economic activity in the fourth quarter. ‘The Christmas season is usually the strong season for banks. There are more loans and consumers pick up more activity,’ Tan said.

‘There are also a lot of opportunities for institutional lending and services,’ he said. For this reason, Tan said the lender has a good chance to ‘meet target, if not very close to it.’

‘We’re still hoping to hit P7 billion, if not close to that. We made P6 billion last year, so we’ll look at a 15-percent growth or a little less this year,’ Tan said. Tan said next year would be ‘better’ but the degree of growth is still ‘a question.’ 

Tan said profits next year should be driven by ‘lending, services and a little bit of capital market.’  ‘Consumer will still be a major driver but because we’re coming from a small base, it’s not that comparable,’ Tan said.

The Henry Sy-owned bank, the surviving entity of the BDO and EPCI Bank merger completed early this year, made P4.9 billion in the first three quarters from P4.7 billion last year on increased loans and deposits. Tan said growth in the fourth quarter should be supported by increased economic activity during the Christmas season. 

The SM group’s mall development arm, SM Prime Holdings, also plans to raise up to P4 billion ( million) in local debt next year to fund its expansion projects, said Jeffrey Lim, the company’s chief finance officer. 

SM Prime plans to open three malls next year, bringing its total shopping centers to 33 by the end of 2008. SM Prime also intends to buy three shopping centers in China, currently owned by the Sy family in a share swap valued at P10.8 billion.  

Henry Sy, one of the country’s richest people, controls SM Investments.  The group has set capital spending of about P26 billion next year, up nearly 30 percent from 2007.

About 40 percent of its capital spending requirements next year would be funded by borrowings, said Jose Sio, group chief finance officer.  SM Investment’s shares finished flat at P335 on Wednesday while SM Prime closed down 4.76 percent at P10 in a general market 0.11 percent weaker.

Banco de Oro ended 0.87 percent stronger at P58