• SM Prime offers P10-B bonds to fund expansion

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    SY-LED SM Prime Holdings Inc. is selling P10-billion worth of retail bonds this month to raise funds for its countryside expansion, the company said on Tuesday.

    The interest rate for the bonds has been set at 4.2005 percent per annum, the company said in a disclosure to the Philippine Stock Exchange (PSE).

    “SM Prime will issue an aggregate principal amount of Php10.0 billion of the Series F bonds, which will be offered to investors through underwriters from July 13 to 19, 2016,” the company said.

    “The retail bonds will be issued on July 26, 2016.”

    The retail bond offering is the first tranche of SM Prime’s P60-billion bond offering, which was recently approved by the Securities and Exchange Commission (SEC).

    SM Prime President Hans Sy said the bond offering will be used to sustain the firm’s provincial expansion plans.

    “The retail bond to be issued will sustain SM Prime’s development roadmap, which is geared towards provincial expansions mostly allotted on malls and offices developments.

    We remain optimistic on the huge growth potential in the provinces where large areas remain unserved,” Sy said.

    The joint issue managers, joint lead underwriters and joint bookrunners are BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp. and First Metro Investment Corp. Participating underwriters for the bond issue include East West Banking Corp., PNB Capital and Investment Corp. and United Coconut Planters Bank.

    The bond issue has been rated PRS Aaa, the highest rating assigned by the Philippine Rating Services Corp. (PhilRatings), the company said.

    “Obligations rated PRS Aaa are of the highest quality with minimal credit risk, and denotes that the Issuer’s repayment capacity is extremely strong,” SM Prime said.

    Strong demand for the retail bonds has been received by SM Prime, according to the underwriters of the bond issue.

    “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,” the company said.

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