SM Prime Holdings Inc., the country’s leading integrated property developer, plans to issue up to P20 billion worth of fixed-rate bonds.
SM Prime said in a disclosure to the stock exchange the planned bond offering of P15 billion with an an oversubscription option of P5 billion would be issued out of the P60-billion three-year debt securities program approved by the Securities and Exchange Commission last year.
The property firm can still raise P50 billion under the P60-billion bond shelf registration program after it issued P10-billion worth of 10-year bonds priced at 4.2005 percent in July.
SM Prime said the latest bond offering was assigned a rating of PRS Aaa by Philippine Rating Services Corp. 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.
SM Prime registered a recurring net income of P79.8 billion in 2016, up by 14 percent from P71.5 billion in 2015.
Consolidated revenues grew 12 percent to P79.8 billion in 2016 from P71.5 billion in 2015 while overall operating income improved 12 percent to P35.3 billion from P31.4 billion.