SM Prime launches P10-B bond offer

Property giant SM Prime Holdings Inc. has launched a P10-billion retail bond offering, the first tranche of a three-year funding program meant to cover its expansion program.

SM Prime—the most valuable company in the Philippine stock market—priced the 10-year retail bonds at 4.2005 percent a year.

They will be offered to the public from July 13 to 19 this year.

“The retail bond to be issued will sustain SM Prime’s development roadmap, which is geared toward provincial expansions mostly allotted on malls and offices developments. We remain optimistic on the huge growth potential in the provinces where large areas remain unserved,” SM Prime president Hans Sy said in a statement Tuesday.

Mandated as joint issue managers, joint lead underwriters and joint bookrunners for this offering are BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp. and First Metro Investment Corp. East West Banking Corp., PNB Capital and Investment Corp. and United Coconut Planters Bank are participating underwriters for the bond issue.

Citing feedback from the underwriters, SM Prime received a strong demand for the latest retail bond offering.

The latest bond offering was rated “triple-A” by local credit watchdog Philippine Rating Services Corp.
The rating of PRS Aaa, the highest assigned by PhilRatings, suggests that the bonds are of “highest quality with minimal credit risk” and that the issuer’s repayment capacity is “extremely strong.”