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SM Prime gets SEC nod on P100-billion bond program

The Securities and Exchange Commission said Wednesday it approved the P100-billion bond shelf registration program of property developer SM Prime Holdings Inc.

It said it rendered effective SM Prime’s registration statement and approved the issuance of the first tranche of the offering amounting to P15 billion with an oversubscription option for another P5 billion.

The Series K bonds will mature in five years while the Series L bonds will be due seven years from the issue date.

The bonds will be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter. They will be listed and traded in denominations of P10,000 on the Philippine Dealing & Exchange Corp.

Proceeds from the fund-raising activity will be used to finance the completion of 17 new malls and expansion of existing malls, according to SM Prime’s application.

SM Prime plans to complete four new malls in 2020 including SM City Butuan, SM City Daet, SM City Grand Central (Caloocan) and SM City Roxas.

The four new malls will have a gross floor area of 221,000 square meters.

It is also set to complete the expansion of SM Baguio and SM Mall of Asia-Ikea which will add 32,000 sq. m. and 157,000 sq. m., respectively.

SM Prime is also scheduled to complete six new malls in 2020 including SM City Bataan, SM City Sorsogon, SM City Tuguegarao, SM City San Pedro, SM City North Davao and SM City Tanza. The new malls will have a total GFA of 197,000 sq. m.

It also plans to complete three mall expansions that will add 74,000 sq. m. of GFA.

The property firm will complete seven new malls in the provinces of Bataan, Sorsogon, Cagayan, Laguna, Davao, and Cavite with a total GFA of 372,000 sq. m. in 2022.

BDO Capital & Investment Corp., China Bank Capital Corp., BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. agreed to act as joint lead underwriters for the offer.

SM Prime may issue the remaining debt securities under its shelf-registration in tranches within three years from the effective date of the registration statement.

Topics: Securities and Exchange Commission , bond shelf registration program , SM Prime Holdings Inc.
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