SM Prime Holdings Inc. looks to raise P35 billion through a bond sale, the proceeds of which will be used for the company’s expansion plans.
SM Prime said it is pricing the bonds, divided into 2.5-year (due 2025), four-year (due 2027), and six-year tenors (due 2029), at 6.2069 percent, 6.2151 percent, and 6.3275 percent respectively.
The bonds are divided into an initial P25 billion and another P10 billion for the oversubscription option.
“The fifth tranche of SM Prime’s P100 billion debt securities program will be used in pursuance of our expansion plans that will provide the company a stronger foothold in the key areas of the country. SM Prime remains committed in delivering sustainable developments across the Philippine that aims to provide improvement in the lives of many Filipinos,” said John Nai Peng Ong, SM Prime chief finance officer.
Credit ratings firm Philippine Rating Services Corporation assigned a PRS Aaa rating on the bond, the highest rating it can assign.
BDO Capital & Investment Corp. and China Bank Capital Corp., will serve as joint issue manager. They are joined by BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp., as joint lead underwriters.
These retail bonds are set to be issued on May 23 after a one week offer period, running May 8 to 12.
