SM Prime Holdings Inc. (SMPH) said Tuesday it will issue up to P25 billion worth of fixed-rate bonds as first tranche from its P100-billion bond-shelf registration program.
SMPH said in stock exchange filing it filed with the Securities and Exchange Commission (SEC) its application for the shelf registration of debt securities amounting to P100 billion.
It proposed to issue up to P20 billion as initial tranche, with an over subscription option for another P5 billion. The bonds will consist of 3-year Series V bonds due 2027, 5-year Series W Bonds due 2029 and 7-year Series X Bonds due in 2031.
The bonds will be listed on the Philippine Dealing & Exchange Corp. The initial offering obtained a PRS Aaa rating from Philippine Rating Services Corp. (PhilRating).
PRS Aaa is the highest assigned by PhilRatings, which indicates that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligation is extremely strong.
SMPH earlier earmarked P100 billion for 2024 capital expenditures primarily to finance the construction of malls, residential, hotel and office projects.
It plans to open four shopping malls in 2024 that will add 440,000 square meters (sq. m.) of gross floor area (GFA).
The property developer posted a consolidated net income of P40 billion in 2023, up 33 percent from P30.1 billion in 2022.
Consolidated revenues amounted to P128.1 billion, higher by 21 percent than P105.8 billion in 2022, while consolidated operating income grew 24 percent to P61.3 billion from P49.2 billion.
SMPH operates 85 malls in the Philippines with 9.2 million sq. m. of GFA and eight malls in China with 1.6 million GFA.
