Property developer SM Prime Holdings Inc. (SMPH) is set to raise up to P17 billion from a proposed fixed-rate bond sale.
The offer includes a base amount of P12 billion with an oversubscription option for another P5 billion, SMPH chief finance officer John Nai Peng Ong said in a disclosure to the stock exchange Monday.
The bonds will be issued as the third tranche under SMPH’s P100-billion shelf registration program, which was approved by the Securities and Exchange Commission (SEC) in 2024.
SMPH said PhilRatings assigned a PRS Aaa rating to the upcoming bond issuance, the highest credit rating it grants.
The rating signifies that the bonds are of the highest quality with minimal credit risk, and that SMPH has an extremely strong capacity to meet its financial obligations.
The rating agency also affirmed the PRS Aaa rating on SMPH’s existing P141.5 billion in outstanding bonds. Both the proposed and outstanding bonds carry a stable outlook.
The domestic fund-raising follows SMPH’s successful issuance of $350 million in US dollar-denominated notes last week. The five-year notes, which carry a coupon rate of 4.75 percent, was nearly three times oversubscribed.
Proceeds from both the peso and dollar bond issuances are expected to support SM Prime’s expansion and development projects across its core businesses, including malls, offices and residential developments.
SMPH earmarked P100 billion for 2025 capital expenditures, primarily to roll out more malls and residential projects across the country.
