SM Prime Holdings Inc. is raising P35 billion from the issuance of Peso-denominated Fixed Rate Bonds consisting of the principal amount of P25.0 billion, with oversubscription option of an additional P10.0 billion.
In a disclosure to the Philippine Stock Exchange, the firm said it has set the interest rates for Series S at 6.2069 percent due on 2025 (2.5 years); Series T at 6.2151 percent due on 2027 (4years); and Series U at 6.3275 percent due on 2029 (6 years).
SM Prime Holdings Chief Finance Officer John Nai Peng C. Ong
“The fifth tranche of SM Prime’s P100 billion Debt Securities Program will be used in pursuance of our expansion plans that will provide the Company a stronger foothold in the key areas of the country,” SM Prime Chief Finance Officer John Nai Peng C. Ong said.
He added that, “SM Prime remains committed in delivering sustainable developments across the Philippine that aims to provide improvement in the lives of many Filipinos.”
Similar to its previous bond issues, the Series S, T and U have been given the highest PRS Aaa rating by Philippine Rating Services Corporation (PhilRatings).
PRS Aaa denotes that such obligations are of the highest quality with minimal credit risk and the issuing company ‘s capacity to meet its financial commitment on the obligations is extremely strong.
The proposed issuance is under the Company’s P100 billion Shelf Registration of Fixed Rates Bonds approved by SEC on Feb. 12, 2020 under the Securities and Exchange Commission. The offer period of the Bonds will take place from May 8 to 12, 2023.
SM Prime’s Series S, T, and U Bonds will be made available to investors through joint issue managers BDO Capital & Investment Corporation and China Bank Capital Corporation.
BDO Capital and CBCC are also joint bookrunners and joint lead underwriters together with BPI Capital Corporation, EastWest Banking Corporation, First Metro Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation. These retail bonds are set to be issued on May 23, 2023.
SM Prime said it remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.