Property developer SM Prime Holdings Inc. raised P30 billion from the issuance of fixed-rate bonds to fund expansion plans.
SMPH said in a stock exchange filing the Series S, T and U fixed-rate bonds were listed on the Philippine Dealing & Exchange Corp. Tuesday.
SMPH said that amid strong demand from investors, it exercised a portion of the overallotment option which enabled it to raise P30 billion in proceeds.
The bonds were issued as fifth tranche from SMPH’s P100-billion bond-shelf registration program approved by the Securities and Exchange Commission in 2022.
“We are very grateful for the trust and support of the investing public, as well as to our bank partners, the Philippine Dealing & Exchange Corp., Philippine Depository & Trust Corp., and PDS Group,” SMPH chief finance officer John Nai Peng Ong said.
“The success of this latest fixed rate bonds will give SM Prime further capabilities to pursue its expansion programs of creating more opportunities for more Filipinos to build a better nation,” he said.
SMPH earmarked P80 billion in 2023 capital expenditures to support the expansion of its mall and residential businesses.
SMPH’s fixed rate bonds Series S, T and U were offered on May 8 to 12, with interest rates of 6.2069 percent, 6.2151 percent and 6.3275 percent, respectively.
The bonds were rated PRS Aaa by Philippine Rating Services Corp.
“PRS Aaa rating is the highest rating assigned by PhilRatings, denoting 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,” PhilRating said.
BDO Capital & Investment Corp. and China Bank Capital Corp. were the joint lead underwriters along with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.
SMPH is set to start the development of a 360-hectare reclamation project in Pasay City. The property developer earmarked P100 billion for the mixed-use development.