Property developer SM Prime Holdings Inc. (SMPH) set the interest rates for its planned P25-billion fixed-rate bond offering.
SMPH said in a disclosure to the stock exchange Monday the peso-denominated fixed-rate bonds Series Y due 2028 would carry an interest rate of 6.0282 percent per annum; Series Z due 2031, 6.2113 percent; and Series AA due 2035, 6.4784 percent.
The property firm will issue a principal amount of P20 billion, with an oversubscription option for another P5 billion. The offer period of the bonds will take place from Feb. 12 to 18, 2025. The bonds will be listed on the Philippine Dealing & Exchange Corp.
The Series Y, Z and AA were rated PRS Aaa by Philippine Rating Services Corp. PRS Aaa rating is the highest rating assigned by PhilRatings, denoting that such obligations 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.
The latest bond offering will be issued as second tranche from the company’s P100-billion shelf registration approved by the Securities and Exchange Commission in June 2024.
SMPH announced last week it earmarked P33 billion this year to expand its commercial property businesses including malls, hotels and offices.
It said of the total budget, P21 billion would be allotted to expand the group’s mall gross floor area (GFA) by 205,400 square meters.
Some 124,488 sq. m. of existing mall space will be redeveloped. By end-2025, SMPH projects its mall GFA to reach 8.08 million sq. m.
The listed property group will also invest P6 billion to build two convention facilities and expand its hotel rooms and another P6 billion to develop new office towers.
