Property developer SM Prime Holdings Inc. set the interest rate of its P20-billion seven-year bond offering at 5.1683 percent per annum.
SM Prime said in a disclosure to the stock exchange it planned to issue P15-billion Series G bonds, with an option to issue an additional P5 billion.
The retail bonds will be offered to investors through underwriters on May 4 to May 11, following the receipt of the permit to sell from the Securities and Exchange Commission.
The retail bonds, to be listed with the Philippine Dealing and Exchange Corp., are set to be issued on May 18.
“The proceeds of the retail bonds will enable SM Prime to pursue our expansions of mall and residential businesses, which are the growth drivers of the company,” SM Prime president Jeffrey Lim said.
This series of SM Prime bonds due 2024 is the fourth offering of peso-denominated retail bonds to the public. Similar to its previous bond issues, the SM Prime Series G bonds were rated PRS Aaa by Philippine Rating Services Corp.
PRS Aaa is the highest rating assigned by PhilRatings. This rating is given to long-term debt securities with the smallest degree of investment risk.
This also indicates SM Prime’s strong capability to meet its financial commitment.
Joint issue managers are BDO Capital & Investment Corp. and China Bank Capital Corp., which are also acting as joint lead underwriters and joint bookrunners together with BPI Capital Corp., PNB Capital, First Metro Investment Corp. and SB Capital Investment Corp.
SM Prime is set to open five malls this year, including SM CDO Downtown Premier in Cagayan de Oro, SM Cherry Antipolo in Rizal, SM Center Tuguegarao Downtown in Cagayan, SM City Puerto Princesa in Palawan and SM Center Lemery in Batangas.
SM Prime is also slated to launch t15,000 to 18,000 residential units in high-rise and mid-rise buildings as well as house and lot developments this year.