Property developer SM Prime Holdings Inc. on Tuesday announced the interest rates for its P10-billion fixed-rate peso bond offering approved by the Securities and Exchange Commission.
SM Prime said in a disclosure to the stock exchange the interest rate for the peso-denominated Series M, 2.5-year retail bonds was set at 2.4565 percent per annum while the Series N, five-year retail bonds would carry an interest rate of 3.8547 percent per annum.
Under the plan, SM Prime will issue an aggregate principal amount of P5 billion in bonds with an oversubscription option for an additional P5 billion.
The retail bonds will be offered to investors from Jan. 25 to 29 this year.
The retail bonds will be issued and listed on the Philippine Dealing & Exchange Corp. on Feb. 5, 2021.
“The proceeds of the retail bonds will allow SM Prime to continue its expansions plans in its core business, which will further drive the company’s growth,” SM Prime chief finance officer John Nai Peng Ong said.
The proposed issuance is the second tranche of SM Prime’s P100-billion debt securities approved by the SEC last year.
It said that similar to previous bond issues, the Series M and N bonds were rated PRS Aaa by Philippine Rating Services Corp.
PRS Aaa is the highest rating assigned by PhilRatings. The rating is given to long-term debt securities with the smallest degree of investment risk. It also indicates SM Prime’s strong capability to meet its financial commitment.
The property giant assigned BDO Capital & Investment Corp. and China Bank Capital Corp. as the joint issue managers and BPI Capital, First Metro Investment Corp. and SB Capital Investment Corp. as the joint lead underwriters for the offering.
SM Prime issued in March the first tranche of its P100-billion shelf registration of fixed rate bonds involving P15 billion in 5-year and 7-year fixed rate bonds with interest rates of 4.8643 percent and 5.0583 percent per annum, respectively.
SM Prime’s share price closed lower by 1.31 percent Tuesday at P37.70.