SEC greenlights SM’s P100 billion bond program

MANILA, Philippines — The Securities and Exchange Commission has given its green light to SM Prime Holdings’ P100-billion program.

The SEC said it has considered favorably the shelf registration of the Sy-led integrated property developer for up to P100 billion of peso-denominated fixed rate bonds which the company may offer in one or more tranches, subject to its compliance with certain remaining requirements.

For the initial tranche, SM Prime plans to offer to the public up to P20 billion of three-year Series V bonds, five-year Series W bonds and seven-year X bonds with an oversubscription option of up to P5 billion for a total of P25 billion. Net proceeds are estimated at P24.72 billion, assuming the over-allotment option is fully exercised. Proceeds will be used to refinance the listed company’s debt and expand its property portfolio.

Based on the latest timeline submitted by the company to the SEC, the bonds will be offered at face value from June 7 to 14.

SM Prime intends to use proceeds from the bond offer to refinance debt and expand its property portfolio.

BDO Capital & Investment Corp. and China Bank Capital Corp. will serve as the joint issue managers for the offer.

They will join BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines and SB Capital Investment Corp. as joint lead underwriters and bookrunners.

For this year, SM Prime is looking at P100 billion capital expenditure to support various programs.

The company plans to open four new malls in the country this year that will add more than 440,000 sqm of gross floor area in the company’s mall portfolio.