Property developer SM Prime sets rates for retail bonds

SM Prime Holdings Inc. (SM Prime), the property developer of the Sy Group, has set the interest rates for its five-year peso-denominated retail bonds at 5.6141 percent; at 6.1175 percent  for the seven year bonds and at 6.5432 percent for the nine-year bonds. 

SM Prime will issue up to P30 billion in bonds or P15 billion base amount plus an oversubscription option of an additional P15.0 billion, to be offered from April 7 to 13, 2022.

SM Prime will use the proceeds of these latest retail bonds issuance to pursue the expansion plans set for the company’s property portfolios, including malls, residential developments, offices, and hotels, which will drive further growth to the company.

The proposed issuance is the fourth tranche under the SM Prime’s P100 billion shelf registration of fixed rate bonds approved by SEC in February 2020.

Local debt watcher Philippine Rating Services Corp. (PhilRatings) gave the bonds a PRS Aaa by Philippine Rating Services Corporation (PhilRatings), which is the highest rating assigned by PhilRatings.

This also denotes that such obligations are of the highest quality with minimal credit risk and the issuing company ‘s capacity to meet its financial commitment on the obligations is extremely strong.

For the transaction, SM Prime tapped issue managers BDO Capital & Investment Corp. and China Bank Capital Corp., as joint bookrunners and joint lead underwriters together with BPI Capital Corp., East West Banking Corporation, First Metro Investment Corp. RCBC Capital Corp. and SB Capital Investment Corp.

SM Prime is targeting to issue the retail bonds on April 22, 2022.