SM Prime eyes P25B from bond offer

Southeast Asian property giant SM Prime Holdings Inc. is debuting on the local bond market on Wednesday with a multiyear retail bond offering worth as much as P25 billion.

In a statement, SM Prime said the 5.5-year retail bonds would carry an interest rate of 5.1 percent per annum while the seven-year bonds would have 5.2006 percent in annual interest rate. The 10-year bonds were priced to yield 5.7417 percent per annum.

SMPH will offer the bonds to investors from Aug. 13 to 22. The bonds will be issued on Sept. 1.

The base offer is P15 billion, but SMPH has the option to issue an additional amount of up to P10 billion.

The offer of peso-denominated retail bonds due 2020, 2021 and 2024, marks SM Prime’s debut in the local bond market. The bonds have been rated “PRS Aaa”—the highest rating that can be assigned by local credit watcher Philippine Rating Services Corp.

With a “PRS Aaa” rating, the bonds are considered “of the highest quality with minimal credit risk,” and that the issuing company’s capacity to meet its obligations is “extremely strong.”

Acting as joint issue managers and joint bookrunners are BDO Capital & Investment Corp. and First Metro Investment Corp. The joint lead underwriters are BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp. and First Metro Investment Corp.

Land Bank of the Philippines, Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp. and United Coconut Planters Bank are participating underwriters for the bond issue.  Doris C. Dumlao