DESPITE the volatility in the financial markets, the Philippines’ biggest mall owner and operator said it would seek fresh loans next year to fund its capital expenditures and refinance old dollar-denominated debts.

Jeffrey Lim, SM Prime Holdings Inc. chief finance officer, told reporters on Wednesday that the company would raise P5 billion through borrowings.

“We’re monitoring the markets. The timing is difficult also so we cannot say. There were several banks that have come to us for proposals,” he said.

The borrowed funds would be used to refinance a US$ 70-million debt availed of in 2004 from several foreign banks. This will mature in October next year, giving SM Prime enough time to mull over how it will raise the fresh capital.

Part of it will also be used to fund the company’s capital expenditures for next year. The mall developer expects to spend P6 billion, or the same amount spent this year.

On Friday, the company will open its 33rd mall in the country in Baliwag, Bulacan, about 40 kilometers from the ESDA-Balintawak interchange of the North Luzon Expressway. It sits on 93,000 square meters of land and has a gross floor area of 61,554 square meters. The mall has a total leasable area of 42,171 square meters with two anchor tenants, SM Department Store and SM Hypermarket.

Besides Baliwag, SM Prime also opened new malls in Rosales, Pangasinan and Marikina this year. Lim said the company expects revenues from mall space leasing to grow by double-digits by year-end with the addition of new malls and expansion of existing malls like the Annex at SM City North EDSA, which would be opened on Friday. All of these will increase the company’s total gross floor area by 9 percent to 4.3 million square meters.

Next year, SM Prime will open three new malls in Rosario, Cavite, Naga and Las Piñas. Lim said the current crisis did not deter the group from building new malls since the gestation period for “new assets that will generate revenues” is two years.

“There are still opportunities out there,” he said.  Jorge Mendiola, senior vice president, said fourth quarter sales of the SM group’s retail business—its biggest revenue contributor—would grow by double digits compared with last year. He said unaudited department store sales grew by 19 percent in October alone while sales from December 1 to 7 grew by 20 percent year-on-year.

“The OFW remittance is still strong,” he said, referring to overseas Filipino workers. “The weaker peso against the dollar helped. Last year it was at around P41 [to a dollar] while now it is at P48 to P49. Consumers here have yet to feel the crisis,” he added.