The Sy family’s SM Prime Holdings Inc., one of the leading integrated property developers in Southeast Asia, is planning to raise as much as P100 billion from the issuance of bonds over the next three years.

SM Prime's Board of Directors told the Philippine Stock Exchange (PSE) of the approval on the proposed application to issue shelf-registered bond in the aggregate amount of P100 billion.

A shelf registration allows an issuer to register a new issue of bonds without having to sell the entire issue at once. It can instead sell portions of the issue over a three-year period without re-registering the security or incurring penalties.

It allows a company to sell a new issue over a three-year period instead of all at once and lets its adjust the timing of the sales to take advantage of more favorable market conditions should they arise in the future.

SM Prime had used up its last P100 billion shelf-registration in May 2023 and then listed its Series S, T, and U fixed rate bond at the Philippine Dealing and Exchange Corp. (PDEx).

The company raised over P30 billion from its base offer of P25 billion which was the fifth tranche of SM Prime’s P100 billion worth of Debt Securities under shelf registration.

“We are very grateful for the trust and support of the investing public, as well as to our bank partners, the Philippine Dealing & Exchange Corp., Philippine Depository & Trust Corp., and PDS Group,” said SM Prime Chief Finance Officer John Nai Peng C. Ong. 

He noted that “the success of this latest fixed rate bonds will give SM Prime further capabilities to pursue its expansion programs of creating more opportunities for more Filipinos to build a better nation.”

SM Prime’s Fixed Rate Bonds Series S, T, and U were offered last May 8 to 12, with interest rates of 6.2069 percent, 6.2151 percent, and 6.3275 percent, respectively.

“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,” 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 joint issue managers are 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.