SM Prime Holdings raises P5B in bonds

SM Prime Holdings Inc., the country’s largest mall operator, said it has successfully raised P5 billion through a bond issuance, the largest corporate private placement for the year.

In a disclosure to the Philippine Stock Exchange, SM Prime said the deal was jointly arranged by BDO Private Bank and Standard Chartered Bank.

The facility consists of five-year and seven-year fixed rate notes facility which will be used for general corporate requirements.

The facility was oversubscribed with 19 primary institutional lenders, illustrating the good credit quality of SM Prime as well as the local market’s confidence in SM Prime.

SM Prime currently has 19 SM Supermalls strategically located nationwide with a total gross floor area of 2.5 million square meters.

On July 15, 2005, SM Prime will open its branch in San Lazaro which sits on a 40,000-square meter property located at A.H. Lacson St. in Sta. Cruz, Manila. Also set to open within the year are SM Supercenter Molino (Molino, Cavite), SM Supercenter Valenzuela (Valenzuela, Metro Manila) and the SM Mall of Asia, set to be the country’s premier shopping destination and tourist attraction, revitalizing the Roxas Boulevard bay area.

Total gross floor area will increase to 3.2 million square meters by end 2005.

Benefiting from the strong performance of its malls despite the prevailing difficult business environment, SM Prime declared P2.3 billion in cash dividends, equivalent to half of its prior year’s net profit.

SM Prime’s net income in 2004 was P4.62 billion, 11 percent higher than the previous year.

Company officials expect to sustain the gains this year with the continued construction of new malls.