Property developer SM Prime Holdings Inc. (SMPH) said Tuesday it raised P25 billion from the issuance of fixed-rate bonds on strong demand from investors.
SMPH said a disclosure to the stock exchange it issued and listed P25 billion worth of bonds in the Philippine Dealing and Exchange Corp. (PDEx) on June 24, 2024.
The offering has a base offer of P20 billion, but the strong demand allowed SMPH to exercise the P5-billion over-allotment option, which enabled it to raise P25 billion.
The company’s Series V, W and X due in 2027, 2029 and 2031, respectively, were issued as first tranche of its P100-billion bond shelf registration program approved by the Securities and Exchange Commission last month.
Interest rates for Series V were set at 6.5754 percent, Series W at 6.7537 percent and Series X at 6.965 percent.
The bonds were rated PRS Aaa with stable outlook by Philippine Rating Services Corp. A rating of PRS Aaa indicates that bonds 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.
SMPH will use the net proceeds from the fund-raising activity to fund debt refinancing and capital expenditures for expansion.
The property firm said it secured bridge loans to fund the refinancing of the Series G bonds worth P20 billion with an interest rate of 5.1683 percent per annum. The bonds matured in May.
SMPH earmarked P100 billion for 2024 capital expenditures primarily to bankroll expansion projects including the development of a 360-hectare reclamation project in Manila Bay.
It also plans to open four new malls this year that will add 440,000 square meters of gross floor area. Jenniffer B. Austria
