The offering is part of its P100-billion bond shelf registration. This will be comprised of a three-year Series Y Bonds (due 2028), six-year Series Z Bonds (due 2031), and 10-year Series A Bonds (due 2035).
The issuance, which was filed with the Securities and Exchange Commission, includes a P20-billion base offer with an oversubscription option of up to P5 billion.
Big picture
SM Prime — a leader in malls, residences, offices, and hotels— seeks to capture investor interest with its bond offering while interest rates remain favorable, as the equities market poses challenges for fundraising.
The developer is readying its financial firepower, as SM Prime president Jeffrey Lim earlier disclosed plans to spend around P110 billion in capital expenditures next year.
The developer also has an optional $3-billion euro medium-term note (EMTN) program but has so far held off on tapping it, unlike parent company SM Investments, which launched a $500-million issuance last July.
Top rating
Meanwhile, Philippine Rating Services Corp. (PhilRatings) assigned a PRS Aa rating to the proposed bond, denoting high quality with low credit risk, and maintained its PRS Aaa rating for SM Prime’s outstanding bonds worth P137.8 billion.
The outlook for both ratings remains stable, PhilRatings added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
