Property giant SM Prime Holdings Inc. plans to raise as much as P20 billion from a fresh offering of peso-denominated bonds to the retail market.
In a disclosure to the Philippine Stock Exchange Friday, SMPH said its board of directors had approved a plan to issue fixed rate bonds worth up to P15 billion with an oversubscription option of 5.25 years and 10 years.
The board also authorized the management to negotiate and finalize the terms and conditions of the deal, including pricing, tenor and any increase in issuance amount, and execute any and all documents necessary, to implement the retail bond issue, the company said.
For this year, SM Prime expects to incur capital expenditures of about P60 billion, which it intends to fund with a mix of internally generated funds and external borrowings.
As of the first six months of the year, SM Prime’s cash position had declined by 44 percent year-on-year to P19.59 billion from P35.25 billion, mainly attributed to payments for capital expenditure projects during the period.
Six-month consolidated net income increased by 90 percent year-on-year to P18.65 billion. Excluding gain on sale of securities, core net income increased by 15 percent year-on-year to P11.24 billion.