SM Prime Holdings Inc., the country’s biggest mall developer, has obtained the top rating for its planned P20-billion bond sale, Philippine Rating Services Corp. said.
Philratings said SM Prime’s bond issue, which involved a base offer of P15 billion with an oversubscription option for another P5 billion, was rated PRS Aaa, reflecting a strong balance sheet.
Philratings said it also considered SM Prime’s brand equity and operational track record, with the company being led by a highly experienced management team; its well diversified portfolio, with components that complement each other; and its ability to successfully tap the capital market for alternative sources of funds as needed.
The consolidation of SM’s real estate properties made SM Prime one of the biggest integrated developers in the Philippines, with its strong position domestically further enhanced by its growing mall operations in China.
SM projects, particularly in terms of mall development, have a solid and established following as SM malls are constantly expanding and keeping up with customer requirements.
As of report writing date, SM Prime has 52 malls in the country, with total gross floor area of 6.6 million square meters.–Miguel Camus