SM Prime readies P35-B bond deal to fuel expansion

MANILA  -Sy-led SM Prime Holdings, one of the country’s biggest property developers, is readying a P35-billion bond sale as it prepares its balance sheet for fresh expansion plans this year.

The real estate arm of conglomerate SM Investments Corp. announced the interest rates on the long-term peso-denominated bonds, which will be offered from May 8 to May 12 this year.

It said the Series S bonds due 2025 would pay an interest rate of 6.2069 percent; Series T due on 2027, 6.2151 percent, and Series U due on 2029, 6.3275 percent.

Bonds worth P25 billion will be sold with another P10 billion set aside for excess demand.

“The fifth tranche of SM Prime’s P100-billion debt securities program will be used in pursuance of our expansion plans that will provide the company a stronger foothold in the key areas of the country,” SM Prime chief finance officer John Nai Peng Ong said in a statement.

Sustainability commitment

“SM Prime remains committed in delivering sustainable developments across the Philippines that aims to provide improvement in the lives of many Filipinos,” he added.

The bonds will be issued on May 23 this year.

These were rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings).

“PRS Aaa rating is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong,” the developer said.

The offer is being arranged by BDO Capital & Investment Corp. and China Bank Capital Corp., which are also joint bookrunners and joint lead underwriters together with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

Ong said in a previous interview the company would set aside P80 billion for capital expenditures in 2023.

SM Prime is also developing a P100-billion Manila Bay reclamation project. The City of Pasay earlier granted SM Prime the notice to proceed with the 360-hectare mixed-use development.

SM Prime will partially fund the project with proceeds from a planned P55-billion initial public offering (IPO) of mall assets in the second half of 2023.  Should the plan continue, this would be the largest ever IPO in the Philippine Stock Exchange. INQ

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