SM Prime raises P20B from retail bond issue

SCREENGRAB from www.smprime.com

Local property giant SM Prime Holdings Inc. has raised P20 billion from its multiyear retail bond offering, marking its debut on 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, citing strong demand from both retail and institutional investors.

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

“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 Aug. 13 to Aug. 22. The issue date is on Sept. 1.

SMPH’s bonds were rated the highest possible rating of “PRS Aaa” by the Philippine Rating Services Corp.

Obligations rated “PRS Aaa” are deemed “of the highest quality with minimal credit risk,” and that the issuing company’s capacity to meet its 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. Doris C. Dumlao