SM Prime Holdings, Inc. announced on Tuesday that it set the interest rates for its retail bonds, the fourth tranche of its P100-billion shelf registration.
“SM Prime will use the proceeds of these latest retail bonds issuance to pursue the expansion plans set for the Company’s property portfolios, including malls, residential developments, offices, and hotels, which will drive further growth to the Company as well as to the communities we serve,” SM Prime Chief Finance Officer John Nai Peng C. Ong said in a company disclosure.
The interest rate for SM Prime’s peso-denominated Series P, five-year retail bond is set at 5.6141% due in 2027; Series Q, seven-year retail bond at 6.1175% due in 2029; and Series R, 10-year retail bond at 6.5432% due in 2032.
SM Prime said it issued an aggregate principal amount of P15 billion of the Series P, Q and R bonds, with an oversubscription option of an additional P15 billion.
The company tapped BDO Capital & Investment Corp. and China Bank Capital Corp. to be the joint issue managers, as well as joint bookrunners and joint lead underwriters together with BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp.
The retail bonds will be offered from April 7 to 13 to investors and are set to be issued on April 22, following the receipt of the permit to sell from the Securities and Exchange Commission (SEC).
The proposed issuance is the fourth tranche under the company’s P100-billion shelf registration of fixed rate bonds approved by the SEC in 2020.
SM Prime said similar to its previous bond issues, the Series P, Q and R bonds have been rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings).
“A rating of PRS Aaa 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,” it said.
In 2021, the company’s consolidated net income grew 21% to P21.8 billion, of which P6.2 billion was recorded in the fourth quarter.
At the stock exchange, SM Prime shares dropped 0.39% or 15 centavos to finish at P38 apiece. — Luisa Maria Jacinta C. Jocson
