SM Prime offers P20B bonds

Property giant SM Prime Holdings is raising as much as P20 billion from a fresh offering of seven-year retail bonds this May, boosting funds for the group’s expansion program.

The retail bonds due 2024 – SM Prime’s fourth offering of peso-denominated bonds to the public – were priced at 5.1682 percent per annum, the property firm disclosed to the Philippine Stock Exchange on Wednesday.

The retail bonds will be offered by SM Prime to investors through underwriters from May 4 to May 11, following the receipt of the permit to sell from the Securities and Exchange Commission.

“The proceeds of the retail bonds will enable SM Prime to pursue our expansions of mall and residential businesses, which are the growth drivers of the company,” SM Prime president Jeffrey Lim said in a press statement on Wednesday.

The base offer is P15 billion but SM Prime has the option to upsize the offer by another P5 billion.
The retail bonds are set to be issued on May 18.

Similar to its previous bond issues, this new offering of “Series G” bonds had been rated “PRS Aaa” by Philippine Rating Services Corp. (PhilRatings), the highest rating assigned by the local credit watcher.

The rating suggests that the bonds carry the smallest degree of investment risk and that the issuer, SM Prime, has strong capability to meet its financial commitment.

The joint issue managers for this offering are BDO Capital & Investment Corp. and China Bank Capital Corp., which are also acting as joint lead underwriters and joint bookrunners together with BPI Capital Corp., PNB Capital, First Metro Investment Corp. and SB Capital Investment Corp.

SM Prime said it remained “committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.”