SM Prime sets rates for initial tranche of P100B bond offering

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SM Prime Holdings Inc. has set interest rates for the initial tranche of the P100 billion shelf registration approved by the Securities and Exchange Commission (SEC).

The approved shelf registration will be offered for a period of three years.

In a statement on Monday, the listed company said the first tranche will consist of peso-denominated Series K and L, 5-year and 7-year fixed rate bonds. The initial offering is P15 billion, with the option to issue additional amounts up to P5 billion.

The interest rates for the Series K and Series L bonds have been set at 4.8643% per annum and 5.0583% per annum, respectively. The bonds are set to be issued on March 25.

“SM Prime is set to establish further integrated property developments in various developing provincial cities in the Philippines. The proceeds from the retail bond will enable the Company to pursue it expansions plans for its core businesses, primarily of its malls projects, which is one of the main growth drivers of the Company,” SM Prime President Jeffrey C. Lim said.


The SM Prime bonds are due in 2025 and 2027. The offering is the company’s seventh peso-denominated retail bonds to the public.

In an earlier statement, the SEC said SM Prime was expected to net P14.79 billion from the issuance, and an added P4.94 billion if the oversubscription option is used.

The Philippine Rating Services Corporation (Philratings) has given the SM Prime’s Series K and L bonds its highest rating of PRS Aaa.

“This rating is given to long-term debt securities with the smallest degree of investment risk. This also indicates SM Prime’s strong capability to meet its financial commitment,” SM Prime’s statement said.

BDO Capital & Investment Corp. and China Bank Capital Corp. were tapped to be the bonds’ joint issue managers.

They also serve as joint lead underwriters and joint bookrunners, along with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

SM Prime Holdings, Inc.’s earnings for 2019 rose 18% to P38.1 billion after the growth of its mall and residential network nationwide. — Jenina P. Ibañez