SM Prime sets interest rates for up to P17-billion bond offering

SM PRIME HOLDINGS, Inc. (SMPH) has announced the initial interest rates for its fixed-rate retail bond Series AB, AC, and AD, which aim to raise up to P17 billion.

- — Alexandria Grace C. Magno

In a regulatory filing on Wednesday, the listed property developer said the bonds will carry interest rates of 5.9096% for Series AB maturing in 2030, 6.0858% for Series AC due in 2032, and 6.2855% for Series AD due in 2035.

The offering, consisting of P12 billion in fixed-rate bonds with an oversubscription option of up to P5 billion, represents the third tranche of SM Prime’s P100-billion debt securities program approved by the Securities and Exchange Commission (SEC) in June last year.

In September, SM Prime said proceeds from the issuance would be used to finance 16 major redevelopment projects and 12 new lifestyle malls scheduled through 2030, as well as the launch of new malls in Xiamen and Fujian, China.

Philippine Rating Services Corp. (PhilRatings) assigned the bonds its highest rating of PRS Aaa, with a “stable” outlook, indicating an “extremely strong” capacity to meet financial obligations.