Property developer SM Prime Holdings Inc. plans to issue up to P20 billion worth of fixed-rate bonds with tenors of five and seven years.
SM Prime said in a recent filing with the Securities and Exchange Commission that it would offer up to P15 billion in fixed-rate bonds with an option for another P5 billion in case of oversubscription.
The property firm tapped BDO Capital & Investments Corp. and China Bank Capital as issue managers, book runners and lead underwriters of the offering and BPI Capital Corp., EastWest Bank, First Metro Investments Corp., RCBC Capital Corp. and SB Capital as joint book runners and joint lead underwriters.
The P20-billion bond offering represents the first tranche of SM Prime’s P100-billion three-year shelf registration debt securities program it filed with the SEC.
SM Prime is set to start developing a 360-hectare Pasay reclamation project after it obtained a notice to proceed from the Pasay City with the reclamation project in December.
The reclamation project in Pasay City will be connected to the Mall of Asia Complex, which is also a reclaimed venture of both parties which turned into a vibrant business district featuring world-class mall, offices, residences, entertainment arena, 5-star hotel and convention center.
As Pasay City’s joint venture partner, SM Prime said it would develop the actual raw land reclamation and horizontal development works.
The company finalized the selection of consultants and contractors from a roster of reputable companies with proven global reclamation and dredging experience to ensure proper and responsible implementation of the project.
SM Prime proposed the 360- hectare Pasay reclamation project in 2014 and committed to spend more than P50 billion for the project.
SM Prime reported a nine-month net income of P27.60 billion, up 18 percent from P23.44 billion in the first nine months of 2018.
Nine-month consolidated revenues rose 14 to P85.03 billion from P74.56 billion while consolidated operating income grew 17 percent to P41billion from P34.91 billion.
The share price of SM Prime ended at P42.10 in 2019.
