SM Prime sets 5.16% interest rate for P15- B retail bonds

May 3 2017 2:01 PM

Sy-led SM Prime Holdings, Inc. (SM Prime) has set the interest rates for its Peso-denominated Series G, 7-year retail bonds at 5.1683% per annum on Tuesday May 2.

SM Prime issued an aggregate principal amount of P 15.0 billion of the Series G bonds, with an option to issue an additional amount of up to P5.0 billion, according to its disclosure to  the Philippine Stock Exchange (PSE).

“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 C. Lim said.

The retail bonds will be offered by SM Prime to investors through underwriters from May 4 to May 11, following the receipt of the permit to sell from the Securities and Exchange Commission (SEC). The retail bonds are set to be issued on May 18.

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 have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings). A rating of 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.

The SM Prime bonds’ joint issue managers are BDO Capital & Investment Corporation and China Bank Capital Corporation, which are also acting as joint lead underwriters and joint bookrunners together with BPI Capital Corporation, PNB Capital, First Metro Investment Corporation, and SB Capital Investment Corporation.

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.

As of December 31, 2015, SMPH has 56 malls in the Philippines with 7.3 million square meters (sqm) of gross floor area (GFA) and six shopping malls in China with 0.9 sqm of GFA.

The malls in China are located in the cities of Xiamen, Jinjiang, Chengdu, Zibo, Chongqing, and Suzhou. The Company has 27 residential projects, 25 of which are in Metro Manila and two in Tagaytay; seven commercial developments; five hotels; four convention centers; and two trade halls. SMPH also owns Sky Ranch, an amusement park that was first launched in Tagaytay, adjacent to the Taal Vista Hotel, and later replicated within SM City Pampanga in the city of San Fernando.

Among the company’s subsidiaries are SM Development Corp.; Costa del Hamilo, Inc.; Highlands Prime, Inc.; Tagaytay Resort and Development Corp.; SM Arena Complex Corp.; SM Hotels and Conventions Corp.; and SM Land (China) Limited.