MANILA, Philippines — Sy family-led property conglomerate SM Prime Holdings Inc. is preparing to raise up to P25 billion as the initial tranche of a long-term P100-billion bond program.
The shopping mall, hotels and residential property giant said it aims to launch a P20-billon bond sale with an oversubscription option of P5 billion.
The bonds will consist of three-year Series V bonds due 2027, five-year Series W bonds due 2029 and seven-year Series X bond due on 2031.
READ: SM Prime eyes P100-B bond program
SM Prime President Jeffrey Lim said in a text message the bonds will be issued over several tranches until fully utilized.
Proceeds will be used for capital spending to support expansion and for refinancing maturing loans, Lim said.
Credit rating
The planned debt issuance was assigned the top score of PRS Aaa by Philippine Rating Service Corp. This means there was a minimal chance of default by the issuer.
PhilRatings also issued a strong credit score on SM Prime’s existing obligations.
“The rating for [SM Prime’s] outstanding bond amounting to P135.43 billion was likewise maintained at PRS Aaa. Philratings assigned a stable outlook for the ratings of the proposed and outstanding bonds,” the filing showed.
READ: SM Prime hits P 40-B profit
“PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong,” it added.
SM Prime is accelerating spending in 2024 via a P100-billion capital spending program.
It said earnings growth in the past year was sustained as net income soared to 33 percent to P40 billion while revenues reached P128.1 billion, a gain of 21 percent.