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SM Prime seeks to raise P100 billion from fixed rate bond offering

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SM Prime Holdings, Inc. has applied for the shelf registration of P100-billion debt securities with the Securities and Exchange Commission (SEC).

In a notice to the public published in a newspaper Thursday, the regulator said the Sy-led conglomerate has applied to offer the fixed rate bonds which will have an initial tranche of up to P15 billion and an oversubscription option of up to P5 billion.

This phase of the offer, the notice said, will consist of five-year Series K bonds that are due in 2025 and seven-year Series L bonds that are due in 2027.

The P80-billion remainder from the shelf registration will be offered within three years from the SEC’s approval of the debt securities.

In its offer supplement posted on its website, SM Prime said it plans to begin the offer in February. The bonds will be issued in scripless form with minimum denominations of P20,000 each and in multiples of P10,000 thereafter.

If the oversubscription option is utilized, the company expects to generate total net proceeds of P19.68 billion, which it plans to use to finance capital expenditures and mall expansion projects through 2022.




SM Prime had tapped BDO Capital and Investment Corp. and China Bank Capital Corp. as joint issue managers for the issuance. Joint bookrunners and joint lead underwriters are BDO Capital, China Bank Capital, BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

The bonds will be listed at the Philippine Dealing & Exchange Corp. They were previously rated by local debt watcher Philippine Rating Services Corp. a credit rating of PRS Aaa.

SM Prime posted an attributable net income of P27.6 billion in the nine months ending September, up 18% from a year ago, as revenues grew 14% to P85.03 billion.

Shares in the company at the stock exchange increased 55 centavos or 1.33% to P42 apiece on Thursday. — Denise A. Valdez









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