SM Prime wraps up P25-B slice of P100-B debt plan

Sy family-led SM Prime Holdings Inc. has listed its latest bond issuance worth P25 billion on the Philippine Dealing and Exchange Corp., completing the first tranche of a P100-billion long-term bond program.

John Nai Peng Ong, SM Prime chief finance officer, said in a statement on Tuesday the fixed-rate retail bonds “have been met with overwhelming demand from the public,” which he said resulted in a three-fold oversubscription that has allowed the company to raise an “impressive” amount.

“This remarkable success is a testament to the unwavering trust and confidence that our shareholders, customers, business partners and the investing community have placed in SM Prime,” Ong added.

READ: SEC approves SM Prime’s P100-B bond program

The property giant got the go signal for its P100-billion debt program last May, allowing SM Prime to raise more capital for its aggressive expansion plans.

BDO Capital and Investment Corp. and China Bank Capital Corp. were the joint issue managers and joint lead underwriters for the issuance, along with BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, Security Bank Corp., and SB Capital Investment Corp.

According to SM Prime, the series V (due 2027), series W (due 2029) and series X (due 2031) bonds had been rated PRS Aaa “with stable outlook” by the Philippine Rating Services Corp., meaning these have minimal credit risk.

Earlier, SM Prime president Jeffrey Lim said they planned to spend P100 billion this year, mainly to open new malls and residential buildings.

According to Lim, they will open four new local malls within the year, spanning a total of 400,000 square meters (sq m).

On May 17, SM Prime opened its third mall in Caloocan City, which covers around 90,000 sq m of retail space.

Meanwhile, the housing business under SM Development Corp. aims to launch up to 10,000 units of residential developments in Northern Luzon, the Visayas and Mindanao.

SM Prime’s earnings in the first quarter rose by 11 percent to P10.5 billion on gains from its mall and residential units. INQ