SM Prime eyes P20B funding

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    Expansion. SM’s 360-hectare reclamation project will be connected to the Mall of Asia Complex.
    Expansion. SM’s 360-hectare reclamation project will be connected to the Mall of Asia Complex.

    SM Prime Holdings Inc. said it looks to raise P20 billion in new funding with the issuance of five- and seven-year bonds.

    The issuance is part of a P100-billion shelf-registered bonds the company sought with regulators.

    The company said it is set to negotiate with bankers the terms of the bonds as far as pricing is concerned.

    In December, SM Prime announced it received approval for a proposed reclamation activity in Pasay.

    The company said it plans to connect the 360-hectare reclamation project it recently got from the city government of Pasay with its Mall of Asia Complex.

    “This new reclamation project in Pasay City will be connected to the Mall of Asia (MOA) Complex, which is also a reclaimed-land project of both parties, and turned into a vibrant business district featuring world-class mall, offices, residences, entertainment arena, 5-star hotel, and convention center,” it said.

    According to SM Prime, it will develop the actual raw land reclamation and horizontal development works, as part of its role as partner.

    The company said it has finalized the selection of consultants and contractors from a roster of reputable companies with proven global reclamation and dredging experience to ensure proper and responsible implementation of the project.

    “We have complied with all the requirements of national agencies and secured all the required permits and clearances to enable SM Prime to commence with the reclamation project. We expect thousands of job opportunities to be generated in the process, and to also contribute significantly to both local and national development,” Jeffrey Lim, SM Prime president, said.

    The project was originally proposed in 2014.

    In 2017, online stockbroker Colfinancial.com said the reclamation could run for seven years, pegging the redevelopment cost at P56 billion. The Pasay reclamation is part of two reclamation project proposals SM Prime offered to two cities, Pasay and Parañaque.

    If completed, these projects will give SM Prime an additional 660-hectare landbank in its bay area development.