SM Prime Holdings Inc. said it looks to raise P10 billion from its P100 billion shelf-registered bonds last year.
The company said the seven-year bonds will be sold at an initial offer of P5 billion and another P5 billion covering the oversubscription option.
The proposed issue represents the third tranche of the company’s proposed three-year debt securities program.
SM Prime said the bond sale has been assigned a PRS Aaa rating from Philippine Rating Services Corp. (PhilRatings).
“PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong,” the company said.
SM Prime in August reported a profit of P11.6 billion for the first half of the year, up 12 percent from P10.4 billion last year.
The company said its second quarter bottomline hit P5.2 billion, up 142.86 percent from P2.1 billion last year. Revenues declined 5.94 percent to P41.1 billion from P43.7 billion last year.
Jeffrey C. Lim, SM Prime president, attributed the improvement in the bottomline to the “continued positive performance of the company’s residential business in the first half of 2021, as well as the company’s malls business in the second quarter of the year in spite of the effect of the reimplementation of stricter community quarantine from March to May 2021 in key areas such as Metro Manila and nearby provinces.”
SM Prime’s residential business, which accounted for 60 percent of its consolidated revenues and led by SM Development Corp., grew revenues by 3 percent to P24.5 billion from P23.7 billion last year. Net reservation sales rose 30 percent to P55.1 billion from P42.4 billion last year. – Ruelle Castro
