Oversubscribed SM Prime bonds net P25 billion

MANILA, Philippines — SM Prime Holdings Inc., the integrated property developer of the Sy family, has raised P25 billion from its oversubscribed bond offering.

SM Prime’s peso-denominated fixed rate bond offer was heavily oversubscribed even before the offer period ended.

“Oversubscribed several times over,” BDO Capital & Investment Corp. president Eduardo Francisco told The STAR.

The offer consisted of P20 billion in aggregate principal amount, with oversubscription option of an additional P5 billion.

Set to be issued on June 24, the bonds were originally scheduled to be offered from June 7 to 14.

The fixed-rate retail bonds were comprised of Series V bonds maturing in three years from its issue date at a rate of 6.5754 percent, Series W bonds maturing in five years from its issue date at a rate of 6.7537 percent and Series X bonds maturing in seven years from its issue date at a rate of 6.9650 percent.

The issuance is part of SM Prime’s P100 billion shelf registration of fixed rate bonds approved by the Securities and Exchange Commission last May 23.

SM Prime will use the proceeds to refinance its debt and expand the company’s property portfolio.

BDO Capital and China Bank Capital served as joint issue managers. They were also the joint bookrunners and joint lead underwriters together with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., Land Bank of the Philippines and SB Capital Investment Corp.

The bonds were rated PRS Aaa, the highest rating assigned by Philippine Rating Services Corp. (PhilRatings).