SM Prime prices P15-B retail bonds at 5.1683%

SM Prime Holdings Inc. has priced a planned debt issuance at 5.1683 percent per year, the company said Wednesday.

The price-setting exercise happened on Tuesday, the company told the Philippine Stock Exchange. The principal amount is P15 billion of Series G bonds, with an option to issue P5 billion more to accommodate additional demand.

The bonds will be offered from May 4 to May 11, on the heels of a permit to sell from the Securities and Exchange Commission. The issue date is on May 18.

“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 Lim said.

The 2024 Series G bonds will be the fourth peso-denominated retail bonds offered by the company. The bonds have been rated "PRS Aaa" by Philippine Rating Services Corp., the highest rating 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 company said.

SM Prime hired BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers. China Bank Capital was also tapped as joint lead underwriter and joint bookrunner with BPI Capital Corp., PNB Capital, First Metro Investment Corp. and SB Capital Investment Corp. — VDS, GMA News