SM Prime sets rates for ₱20-B peso bonds

Published March 2, 2020, 12:00 AM

by manilabulletin_admin

By James A. Loyola

SM Prime Holdings Inc. has set the interest rates for its Peso-denominated Series K and Series L Bonds at 4.8643 percent p.a. and 5.0583 percent p.a., respectively.

In a disclosure to the Philippine Stock Exchange, SM Prime said the bonds are set to be issued on March 25, 2019.

This comes after the Securities and Exchange Commission approved SM Prime’s ₱100 billion shelf registration to be offered within a period of three years.

The first tranche to be offered will consist of Peso-denominated Series K and L, 5-year and 7-year fixed rate bonds, with an initial offering of ₱15 billion and with an option to issue an additional amount of up to ₱5.0 billion.

“SM Prime is set to establish further integrated property developments in various developing provincial cities in the Philippines,” SM Prime President Jeffrey C. Lim said.

Thus, Lim said “The proceeds from the retail bond will enable the Company to pursue it expansions plans for its core businesses, primarily of its malls projects, which is one of the main growth drivers of the Company.”

This series of SM Prime bonds due on 2025 and 2027 is the seventh offering of Peso-denominated retail bonds to the public.

Similar to its previous bond issues, the SM Prime Series K and L bonds have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings).

A rating of PRS Aaa is the highest rating assigned by PhilRatings. 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.

The SM Prime bonds’ joint issue managers are BDO Capital & Investment Corporation and China Bank Capital Corporation, which are also acting as joint lead underwriters and joint bookrunners together with BPI Capital Corporation, EastWest Banking Corporation, First Metro Investment Corp., RCBC Capital Corporation and SB Capital Investment Corp.