Property developer SM Prime Holdings Inc. (SMPH) plans to issue P25 billion worth of fixed retail bonds next month based on the company’s regulatory filing.
SMPH said in a registration statement filed with the Securities and Exchange Commission the tentative offer period for the bonds will be Feb. 12 to 19, 2025, subject to regulatory approval.
Issue date was set tentatively on Feb. 25, 2025.
The property firm tapped BDO Capital and ChinaBank Capital as joint issue managers and joint lead underwriters and book runners for the offering.
It also engaged BPI Capital Corp., PNB Capital, First Metro Investments Corp., Security Bank Capital and LandBank as joint lead underwriters and book runners for the deal.
SMPH said it would use the proceeds from the debt-raising activity for debt refinancing and capital expenditures for expansion of the group’s portfolio.
SMP reported in December plans to issue and sell up P20 billion, with an over subscription option for another P5 billion worth of bonds.
The offering consists of 3-year Series Y Bonds due 2028, 6-year Series Z Bonds due 2031 and 10-year Series AA Bonds due 2035.
The bonds will be issued as second tranche from the company’s P100-billion bond shelf registration program approved by the SEC in June.
The planned bond offering was assigned PRS Aaa by Philippine Rating Services Corp. (PhilRatings).
PRS Aaa is the highest rating assigned by PhilRatings, denoting 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 obligations is extremely strong.
SMPH earlier reported plans to buy back up to P10 billion worth of shares from the open market in a bid to improve shareholder value.
The property firm plans to spend up to P110 billion in 2025 to expand its mall business while also venturing into both the affordable and high-end residential segments.
