SM Prime’s P20-B bond issue rated triple-A by Philratings

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SM Prime Holdings Inc., the listed property developer of the SM Group, has secured an “Aaa” credit rating from Philippine Rating Services Corp. (Philratings) for its P20-billion bond issue, the second tranche of its P60-billion bond program under shelf registration.

In a statement on Monday, SM Prime said Philratings rated its P20-billion bond issue “PRS Aaa” and maintained the “PRS Aaa” rating for SM Prime’s P60-billion bond program, citing a “stable outlook” for both proposed and outstanding bonds.

“PRS Aaa” is the highest rating assigned by Philratings, indicating the highest quality with minimal credit risk and denotes an issuer’s “extremely strong” capacity to meet its financial commitment on the obligations.

The P20-billion bond issue consists of seven-year Series G bonds due 2024 amounting to P15 billion and an oversubscription option of P5 billion. Proceeds will be used to support the company’s expansion plans.


In July last year, SM Prime issued the initial P10-billion tranche of its P60- billion shelf offer-ing. The company recently applied for a permit to sell with the Securities and Exchange Commission (SEC) to issue another P20 billion worth of bonds, representing the second tranche, with the issue date targeted in April.

SM Prime is the property vehicle of the SM Group under umbrella conglomerate SM Invest-ments Corp., which also holds the group’s businesses in retail (SM Retail Inc.) and banking (BDO Unibank Inc.).

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