SM Prime pegs interest rates for P10 billion bonds

Iris Gonzales (The Philippine Star) - January 27, 2021 - 12:00am

MANILA, Philippines — SM Prime Holdings Inc., the listed property developer of the SM Group, has pegged the interest rates for its planned fixed-rate retail bonds.

In a disclosure yesterday, Sy-owned SM Prime set the interest rates for its peso-denominated Series M 2.5-year retail bond at 2.4565 percent due 2023 and Series N five-year retail bonds at 3.8547 percent due 2026.

SM Prime is offering P10 billion in retail bonds or P5 billion in aggregate principal amount and an oversubscription option of another P5 billion.

SM Prime CFO John Nai Peng Ong said proceeds of the bond issue would allow SM Prime to continue its expansions plans in its core business, which will further drive the company’s growth.

The public offering commenced on Monday and would end on Jan. 29.

The retail bonds are set to be issued on Feb. 5.

The P10 billion issuance is the second drawdown from SM Prime’s P100 billion debt securities program under the shelf registration registered with the Securities and Exchange Commission.

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

The bonds have been rated PRS Aaa. 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.

SM Prime has tapped BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers and joint lead underwriters together with BPI Capital, First Metro Investment Corp and SB Capital Investment Corp.

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