SM Prime raises P10 billion from latest bond offer

SM Prime Holdings Inc., the listed property developer of the Sy Group, successfully raised P10 billion from its latest fixed rate bond offer. 

The bonds were listed at the Philippine Dealing & Exchange Corp. (PDEx) through a virtual ceremony. 

SM Prime chief finance officer John Nai Peng Ong led the listing ceremony for the Series M and N P10 billion offering. 

Proceeds of the retail bonds would allow SM Prime to continue its expansions plans in its core business, which will further drive the company’s growth. 

The peso-denominated fixed rate bonds Series M 2023 bonds had a rate of 2.4565 percent while Series N 2026 bonds had a rate of  3.8547 percent.

The issuance marks the second drawdown from the SM Prime’s P100 billion debt securities program registered under the SEC’s shelf registration program. 

SM Prime tapped BDO Capital & Investment Corp. and China Bank Capital Corp. as joint lead underwriters along with other underwriters such as BPI Capital, First Metro Investment Corp. , and SB Capital Investment Corp. 

Similar to its previous bond issues, the SM Prime Series M and N bonds received the highest ratings from Philippine Rating Services Corporation (PhilRatings), a local debt watcher.

The ratings have been rated PRS Aaa by 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.

Moving forward, SM Prime remains committed to its role as a catalyst for economic growth through its different residential, office and commercial projects as well as through its mall developments.