The Securities and Exchange Commission (SEC) approved the P100-billion bond shelf registration program of property developer SM Prime Holdings Inc.
The SEC said in a statement Thursday it rendered effective the registration of the company’s P100-billion peso-denominated bonds, which could be offered in one or more tranches, subject to its compliance with certain requirements.
SM Prime’s first tranche involves an offering of up to P20 billion of three-year Series V bonds, five-year Series W bonds and seven-year X bonds, with an oversubscription option for another P5 billion.
It plans to use the proceeds from the bond offering to refinance debt and expand its property portfolio.
The bonds will be offered at face value from June 7 to 14, according to the latest timeline submitted to the SEC. They will subsequently be listed on the Philippine Dealing & Exchange Corp.
The property firm tapped BDO Capital & Investment Corp. and China Bank Capital Corp. as the joint issue managers for the offering. They will join BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines and SB Capital Investment Corp. as joint lead underwriters and bookrunners.
The P20-billion initial bond offering obtained the highest rating of PRS Aaa from Philippine Rating Services Corp. (PhilRating).
PRS Aaa rating 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.
SM Prime earmarked P100 billion for 2024 capital expenditures primarily to bankroll expansion projects including the development of a 360-hectare reclamation project in Manila Bay.
It also plans to open four new malls this year that will add 440,000 square meters (sq. m.) of gross floor area (GFA).
It also intends to launch between 8,000 to 10,000 residential units this year, mostly in provincial areas.
SM Prime booked a net income of P10.5 billion in the first quarter of 2024, an 11-percent increase from P9.4 billion in the same period last year as consolidated revenues rose 7 percent year-on-year to P30.7 billion on higher mall and residential sales.