SM Prime raises P20 billion from bond offer | Inquirer Business

SM Prime raises P20 billion from bond offer

/ 01:32 PM September 01, 2014


MANILA, Philippines — Local property giant SM Prime Holdings Inc. has raised P20 billion from its multi-year retail bond offering, marking its debut into the local bond market.

In a disclosure to the Philippine Stock Exchange on Monday, SMPH said it had upsized its retail bond issue to P20 billion from the base offer of P15 billion due to strong demand from both retail and institutional investors.


The issue consisted of bonds due 2020 carrying an annual interest of 5.1 percent per annum, another series of bonds due 2021 with an interest rate of 5.2006 percent and another series due 2024 at 5.7417 percent per annum.

“The bonds were purchased by a wide spectrum of investors, ranging from individuals in the retail market to banks, investment funds, pension funds, insurance companies and other corporates,” the disclosure said.


“The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option,” it added.

SM Prime offered the bonds from August 13 to August 22. The issue date is Monday (September 1).

SMPH’s bonds were rated “PRS Aaa” by Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings.

Obligations rated “PRS Aaa” are deemed “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 joint issue managers and joint bookrunners of the SMPH bonds are BDO Capital & Investment Corp. and First Metro Investment Corp., which also acted as joint lead underwriters together with BPI Capital Corp. and China Banking Corp.

Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. acted as participating underwriters of the bond issue.


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