SM Prime out to raise P25B from bond offer

MALL landlord SM Prime Holdings Inc. is returning to the debt market with the planned issuance of an initial P25 billion in fixed-rate retail bonds as part of a P100-billion shelf registration program.

A registration statement has been submitted to the Securities and Exchange Commission (SEC), it told the stock exchange on Tuesday.

The first tranche of the proposed bond offering will be P20 billion, with an oversubscription option of up to P5.0 billion.

The bond offer will consist of threeyear Series V bonds due in 2027; fiveyear Series W bonds due in 2029; and seven-year Series X bonds due in 2031.

SM Prime noted that the bond issue was rated PRS Aaa — the highest assigned by local debt watcher Philippine Rating Services Corp. (PhilRatings), denoting that the bonds were of the highest quality with minimal credit risk and the issuer’s capacity to meet its financial commitment to the obligations was extremely strong.

“The rating for [SM Prime’s] outstanding bonds amounting to P135.43 billion was likewise maintained at PRS Aaa. PhilRatings assigned a stable outlook for the ratings of the proposed and outstanding bonds,” the company added.

SM Prime reported that its net income last year soared 33 percent to P40 billion from 2022’s P30.1 billion, while consolidated revenues increased 21 percent to P128.1 billion from P105.8 billion.

It has allocated a capital expenditure budget of P100 billion this year for land banking initiatives, expansion in residential and commercial businesses, and planned mall developments.

SM Prime President Jeffrey Lim has said that they expect the company’s growth momentum to continue in 2024 “as we pursue our expansion plans in our key businesses and explore new opportunities to expand our businesses.”

The company’s shares were unchanged at P31.60 on Tuesday.