Corporate News

SM taps 4 banks for retail bond offering

Posted on September 25, 2015

SM Prime Holdings, Inc., the property holding firm of tycoon Henry Sy, Sr., has tapped four banks to underwrite its up to P20-billion retail bond offering to bankroll its mall expansion, according to a regulatory filing.

A prospectus dated Sept. 21 showed the integrated property developer mandated BDO Capital & Investment Corp., BPI Capital Corp., China Banking Corp., and First Metro Investment Corp. as the debt issuance’s joint lead underwriters.

BDO Capital, Chinabank and First Metro would also act as joint issue managers and bookrunners.

SM Prime is returning to the bond market with the issuance of 5.3-year and 10-year retail bonds of up to P15 billion with an oversubscription of up to P5 billion.

Net proceeds of as much as P19.82 billion, inclusive of the overallotment option, would be used to finance capital expenditures for the expansion of its mall operations.

This is SM Prime’s second bond offering since raising P20 billion from its maiden issuance in August last year.

SM Prime Chief Executive Officer Jeffrey C. Lim said last month the company may raise roughly P30 billion from two debt issuance until the first semester of 2016 to finance capital expenditure requirements.

SM Prime is on the second year of a five-year program that entails a capital spending budget of P400 billion to beef up its businesses that will double earnings by 2018. The company is alloting P72.3 billion for capex this year. -- K.A.M. Montealegre