Property developer SM Prime Holdings Inc. said Friday it plans to issue another P10 billion worth of fixed-rate bonds with tenors of 2.5 and 5 years.
SM Prime said in a disclosure to the stock exchange it filed with the Securities and Exchange Commission a permit to sell for P5 billion worth of fixed-rate bonds with an oversubscription option for another P5 billion.
The bond offering represents the second tranche from the company’s P100-billion bond-shelf registration program approved by the SEC in February.
The latest bond offering received a rating of PRS Aaa from Philippine Ratings Services Corp. PRS Aaa is the highest assigned by Philratings, denoting that such obligations are of highest quality with minimum credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.
The rating for the property firm’s outstanding bonds amounting to P99.96 billion was also maintained at PRS Aaa.
SM Prime issued in March P15 billion as first tranche of the P100-billion bond-shelf registration program. The bonds, with tenors of 5 years and 7 years, carry an interest rates of 4.8643 percent and 5.0583 percent per annum, respectively.
SM Prime operates 76 malls in the Philippines and eight malls in China.
Net income declined by 48 percent in the first three quarters to P14.4 billion as the mall business was affected by the quarantine restrictions imposed to curb the spread of the new coronavirus.
Nine-month consolidated sales reached P60.7 billion, down 29 percent from P85 billion in the same period in 2019.
SM’s mall business posted sales of P18.3 billion in the nine-month period, down 57 percent from P42 billion a year ago.
The group’s residential business under SM Development Corp. booked a 7-percent increase in nine-month revenues to P34.2 billion from P31.9 billion in the same period last year.