SM Prime Holdings Inc., the Sy family’s flagship property firm, has set the interest rates for a maximum P30-billion long-term bond issuance.
The company’s 5-year bonds (Series P) due 2027 were priced at 5.6141 percent, its seven-year bonds (Series Q) due 2029 were priced at 6.1175 percent and its 10-year bonds (Series R) due on 2032 were priced at 6.5432 percent.
The base offer is P15 billion while another P15 billion would be set aside to cover excess demand.
Use of proceeds
The company said the bonds would be used to fund its expansion, which included an P80-billion capital spending budget for 2022, a recent stock exchange filing showed.
SM Prime said the retail bonds would be offered from April 7 to April 13 while the issue date was set on April 22.
Joint issue managers were Sy banking affiliate BDO Capital & Investment Corp. and China Bank Capital Corp. They were also joint bookrunners and joint lead underwriters alongside BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.
“SM Prime will use the proceeds of these latest retail bonds issuance to pursue the expansion plans set for the company’s property portfolios, including malls, residential developments, offices and hotels, which will drive further growth to the company as well as to the communities we serve,” SM Prime chief finance officer John Nai Peng Ong said in a statement on Tuesday.
Fourth tranche
SM Prime, part of the Sy family’s property, retail and banking conglomerate SM Investments Corp., said this was the fourth bond issuance under a maximum P100-billion debt sale that was previously registered with the Securities and Exchange Commission.
The new bonds have been rated PRS Aaa by Philippine Rating Services Corp. This was the highest possible rating indicating minimal credit risk.