SM Prime gets SEC nod on P60-B bond sale


The Securities and Exchange Commission (SEC) has approved the proposed bond offering of up to P60 billion of SM Prime Holdings Inc.

During an en banc meeting over the weekend, the regulator has approved the shelf registration application of the firm’s bond sale in the next three years.

In the first tranche, SMPH will be offering P10 billion worth of bonds. The issuance consists of 10-year fixed rate debt papers or Series F bonds, which will be offered in minimum denominations of P20,000 and after that in multiples of P10,000.

The proceeds from the initial bond sale will be used to support capital expenditures for the year.

The principal amount is P5 billion which may be increased by another P5 billion in case of an oversubscription.

SM Prime wants to expand its commercial and hotel operations and has earmarked some P2.42 billion for its commercial projects and some P2.07 billion for the hotels
“Any shortfall in the net proceeds for the intended uses. . . shall be funded by the issuer from internal sources such as cash flows generated from operations and availments from credit facilities provided to the issuer by various financial institutions,” it said.

The company earlier said it was looking at a capital expenditure of P180 billion for the next three years to bolster growth. It targets to double net income to P32 billion by 2018 from P16 billion in 2014 after the consolidation of the property businesses of the SM Group of companies under SM Prime.


Please follow our commenting guidelines.

Comments are closed.