By James A. Loyola
SM Prime Holdings, Inc., one of the largest integrated property developers in Southeast Asia, is planning to raise up to ₱20 billion from a bond issuance.
The proposed issue of ₱15.0 billion, with an oversubscription option of up to ₱5.0 billion represents the initial tranche of the company’s three-year shelf registration debt securities program of up to ₱100.0 billion.
Philippine Rating Services Corporation (PhilRatings) has assigned its highest issue credit rating of PRS Aaa with a stable outlook to SM Prime’s bond issue.
PhilRatings has also maintained its PRS Aaa credit rating and its Stable Outlook for SMPH’s outstanding rated bonds with a total amount of ₱100.0 billion.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
The issue rating reflects SMPH’s strong brand equity; its solid track record across a well-diversified portfolio; its sound financial profile, supported by strong recurring income; and the company’s highly-experienced Board and management.
As of end-September 2019, SM Prime had 73 Philippine malls with a gross floor area (GFA) of 8.5 million square meters (sqm) and housing 18,716 tenants. SMPH also had seven malls in China, with a GFA of 1.3 million sqm.
SMPH, through SM Development Corporation (SMDC), has launched 136,994 residential units since 2003.
As of end-September 2019, SMPH had 12 office buildings with a combined GFA of 662,000 sqm. The occupancy rates of these buildings ranged from 97 percent to 100 percent, indicating strong demand for the Group’s office space.
SMPH also operated eight hotels, with more than 1,900 rooms, as well as four SMX Convention Centers and three Megatrade Halls with more than 37,000 sqm of leasable space.
As of September 30, 2019, SMPH had a total landbank of 1,748 hectares located in emerging progressive cities across the country, and which is good for development for the next five to seven years.