SMPH to sell P20B in bonds

Regional property giant SM Prime Holdings Inc. has launched a local retail bond offering worth as much as P20 billion, proceeds from which will fund mall expansions and refinance existing debt.

SM Prime has priced the 5.25-year retail bonds to yield 4.5095 percent per annum while the 10-year bonds were priced to yield 4.799 percent per annum.

The property developer is authorized to issue a principal amount of P15 billion plus an option to upsize by P5 billion.

The offering of the local bonds due 2021 and 2025 started last Nov. 4 and will run until Nov. 13 this year.  The bonds will be issued on Nov. 25.

“The retail bond to be issued by SM Prime will largely support funding for our mall expansion programs in the coming years.  This is a testament to management’s confidence that the economic growth of the Philippines will be sustained over the medium term and will eventually have a positive impact on the provinces as growth spreads to these areas.” SM Prime president Hans Sy said in a press statement.