SM Prime issues P15 billion bonds

MANILA, Philippines — Property developer SM Prime Holdings Inc. has issued P15 billion worth of fixed rate bonds.

The five-year and seven-year fixed rate bonds fetched annual interest rates of 4.8643 percent and 5.0583 percent, respectively.

Proceeds will be used to beef up SM Prime’s war chest to fund its expansion projects for the year, including new malls and a 600-hectare reclamation project in Pasay.

SM Prime had planned to borrow a total of P100 billion over a three-year period.

The company is planning new integrated property developments in several provinces in the country.

Proceeds from the retail bond offering will enable the company to pursue it expansion plans, primarily for its malls projects, which is one of the main growth drivers of the company.

Local debt watcher Philippine Rating Services Corp. (PhilRatings) assigned a PRS Aaa rating to the bonds.

This rating is given to long-term debt securities with the smallest degree of investment risk. This also indicates SM Prime’s strong capability to meet its financial commitment.

SM Prime tapped BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers. They are also the joint lead underwriters and joint bookrunners together with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.