SM Prime sets rates for bonds

MANILA, Philippines — SM Prime Holdings, the conglomerate of the Sy Group, has set the interest rates for its P30-billion fixed rate bonds.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, SM Prime said Series S bonds due 2025 would have an interest rate of 6.2069 percent; Series T due 2027 will have an interest rate of 6.2151 percent while the Series U due 2029 will have an interest rate of 6.3275 percent.

The company issued an aggregate principal amount of P25 billion, with oversubscription option of an additional P10 billion, proceeds of which would fund the company’s expansion as it sets its sights on key areas in the country, said SM Prime CFO John Nai Peng Ong.

“The fifth tranche of SM Prime’s P100 billion debt securities program will be used in pursuance of our expansion plans that will provide the company a stronger foothold in the key areas of the country. SM Prime remains committed in delivering sustainable developments across the Philippine that aims to provide improvement in the lives of many Filipinos,” he said.

PhilRatings has assigned a PRS Aaa rating on the bonds, 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.

The proposed issuance is under the company’s P100 billion shelf registration of fixed rates bonds approved by Securities and Exchange Commission (SEC) in 2020.

SM Prime will offer the bonds from May 8 to 12, 2023.

It will be available to investors through joint issue managers BDO Capital & Investment Corp. and China Bank Capital Corp., which are also joint bookrunners and joint lead underwriters together with BPI Capital Corp. EastWest Banking Corp., First Metro Investment Corp. RCBC Capital Corp., and SB Capital Investment Corp.