SM Prime Holdings Inc. is set to raise P20 billion from the P100-billion shelf-registered bonds it recently got approval from the Securities and Exchange Commission.
The company said it is set to issue the first tranche consist of five-year and seven-year fixed-rate bonds, with an initial offering of P15 billion and with an option to issue an additional amount of up to P5.0 billion.
Carrying the series K and L, the bonds will have a coupon rate of 4.8643 percent p.a. and 5.0583 percent respectively.
“The bonds are set to be issued on March 25,” the company said.
“SM Prime is set to establish further integrated property developments in various developing provincial cities in the Philippines. The proceeds from the retail bond will enable the Company to pursue it expansions plans for its core businesses, primarily of its malls projects, which is one of the main growth drivers of the Company,” said Jeffrey Lim, SM Prime president.
Lim said the soon-to be-issued bonds, due on 2025 and 2027, represent the seventh offering of peso-denominated retail bonds by SM Prime to the public.
“Similar to its previous bond issues, the SM Prime Series K and L bonds have been rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings). A rating of PRS Aaa is the highest rating assigned by PhilRatings. This rating is given to long-term debt securities with the smallest degree of investment risk. This also indicates SM Prime’s strong capability to meet its financial commitment,” Lim said.
Tapped as joint issue managers are BDO Capital & Investment Corp., and China Bank Capital Corp.. They also serve as joint lead underwriters and joint bookrunners together with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.
