SM Prime eyeing up to P100-B bond program

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THE SY family’s SM Prime Holdings, Inc. is planning a P100-billion bond program as part of its fundraising initiatives.

In a stock exchange disclosure on Tuesday, the listed property developer said it submitted a registration statement to the Securities and Exchange Commission  for a proposed shelf registration of debt securities worth P100 billion.

The proposed first tranche of the bond offer is up to P20 billion with an oversubscription option of up to P5 billion, consisting of three-year series V bonds due in 2027, five-year series W bonds due in 2029, and seven-year series X bonds due in 2031.

In a separate regulatory filing, SM Prime said the first tranche of the bond offer has received a PRS Aaa rating from the Philippine Rating Services Corp. (PhilRatings).

PhilRatings also kept the PRS Aaa rating given to SM Prime’s outstanding bonds worth P135.43 billion.

SM Prime said that PhilRatings also gave a “stable outlook” for the proposed and outstanding bonds.

The PRS Aaa rating is the highest rating given by PhilRatings. Those given the rating are “of the highest quality with minimal credit risk” while the issuing company has an “extremely strong” capacity to meet its financial commitment on the obligations.

Last year, SM Prime saw a 33% increase in its net income to P40 billion. Its consolidated revenue surged by 21% to P128.1 billion from P105.8 billion in 2022, while operating income climbed by 24% to P61.3 billion.

SM Prime has earmarked P100 billion for its capital expenditure budget this year. It is the property arm of SM Investments Corp. and is engaged in the development and management of malls, residences, offices, hotels, and convention centers.

On Tuesday, SM Prime shares closed unchanged at P31.60 apiece. — Revin Mikhael D. Ochave