SM sets rates for P25-B retail bonds

SM Prime Holdings Inc., one of the leading integrated developers in Southeast Asia, is set to raise P25 billion following the setting of the interest rate for its Peso-denominated Fixed Rate Bonds.

In a disclosure to the Philippine Stock Exchange, the firm said the bond issuance consists of Series V due in Year 2027(3 years); Series W due in Year 2029 (5 years); and Series X due in Year 2031 (7 years). 

The interest rates for the bonds are: Series V, 6.5754 percent; Series W, 6.7537 percent; and Series X,  6.9650 percent.

The Company will issue an aggregate principal amount of P20 billion, with oversubscription option of an additional P5 billion. 

The proposed issuance is under the Company’s P100 billion Shelf Registration of Fixed Rates Bonds approved by Stock and Exchange Commission (SEC) on May 23, 2024. The offer period of the Bonds will take place from June 7 to 14, 2024.

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SM Prime Chief Finance Officer John Nai Peng C. Ong

“SM Prime recognizes the support of SEC in our pursuit of growth opportunities through our newest P100 billion bond program. This endeavor will help us fuel our passion of providing sustainable integrated property developments to serve more communities across the nation,” SM Prime Chief Finance Officer John Nai Peng C. Ong said.

The Series V, W and X have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings).

PRS Aaa rating is the highest rating assigned by PhilRatings, denoting 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.

SM Prime’s Series V, W, and X Bonds will be made available to investors through joint issue managers BDO Capital & Investment Corporation and China Bank Capital Corporation.

BDO Capital and China Bank Capital are also joint bookrunners and joint lead underwriters together with BPI Capital Corporation, EastWest Banking Corporation, First Metro Investment Corporation, Land Bank of the Philippines, and SB Capital Investment Corporation.

The bonds will be available following the receipt of the Permit to Sell from the Securities and Exchange Commission. These retail bonds are set to be issued on June 24, 2024.

SM Prime 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.