SM Prime retail bonds upsized to P20B

MANILA, Philippines - SM Prime Holdings Inc. (SMPH) has upsized its retail bond issue to P20 billion from the initial size of P15 billion due to a strong demand from both retail and institutional investors. This is SMPH’s maiden offering of retail bonds in the public market.

The issue consists of the 5.1000 percent Series A bonds due 2020, 5.2006 percent Series B bonds due 2021 and 5.7417 percent Series C Bonds due 2024.

The bonds were purchased by a wide spectrum of investors ranging from individuals in the retail market to banks, investment funds, pension funds, insurance companies and other corporates. The strong market response prompted the joint issue managers and joint lead underwriters to exercise the company’s oversubscription option. The offer period for the SMPH bonds opened on Aug. 13 and closed on Aug. 22. The issue date is Sept. 1.

SMPH’s bonds are rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings), the highest rating assigned by PhilRatings. The rating denotes 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.

The joint issue managers and joint bookrunners of the SMPH bonds are BDO Capital & Investment Corp. and First Metro Investment Corp., which also acted as joint lead underwriters together with BPI Capital Corp. and China Banking Corp. Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SBCapital Investment Corp. acted as participating underwriters of the bond issue.