Integrated property developer SM Prime Holdings Inc. (SMPH) has set the interest rates for its P17-billion peso-denominated fixed rate bond offering, with proceeds aimed at supporting expansion and development projects.
The offering has a base offer of up to P12 billion with an oversubscription option for another P5 billion. The offer period is scheduled to run from Nov. 3 to 7, 2025.
The bonds are structured in three series. Series AB bonds, due 2030, carry an interest rate of 5.9096 percent, while Series AC bonds, due 2032, will have 6.0858 percent. Series AD bonds, due 2035, are set at 6.2855 percent.
The Series AB, AC and AD bonds have been rated PRS Aaa by the Philippine Rating Services Corp. (PhilRatings), its highest rating, reflecting minimal credit risk and an extremely strong capacity for the issuer to meet its financial commitment.
The issuance is the third tranche of SMPH’s P100-billion bond shelf registration program, approved by the Securities and Exchange Commission in June 2024.
The domestic fund-raising effort follows the successful issuance of $350 million denominated five-year notes last week, which carried a coupon rate of 4.75 percent and 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.
Meanwhile, SMPH’s office unit is scaling up its renewable energy (RE) use as part of a broader push for sustainability. The company said SM Offices now sources more than half of its operational power from certified renewable energy.
As of mid-2025, SM Prime has installed solar photovoltaic (PV) systems across 48 malls and offices with a combined capacity of 73 megawatts peak (MWp).
“SM Offices not only supports but also goes beyond the Philippine government’s target of having 50 percent of the country’s power generation come from renewable sources by 2040,” said SM Offices vice president Alexis Ortiga.
SM Offices is integrating solar grids, sensor-enabled fixtures and energy-efficient cooling systems into building design and operations to stabilize energy costs, improve comfort and reliability and enable tenants to meet their sustainability commitments.
