4 weeks ago
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Richmond Mercurio - The Philippine Star
February 19, 2025 | 12:00am
The STAR learned from a source that the full amount from SM Prime’s peso-denominated fixed-rate bond issuance was raised and the oversubscription was fully taken up.
Businessworld / File
MANILA, Philippines — SM Prime Holdings Inc., the integrated property developer of the Sy family, has beefed up further its balance sheet after successfully raising P25 billion from an oversubscribed retail bond offering.
The STAR learned from a source that the full amount from SM Prime’s peso-denominated fixed-rate bond issuance was raised and the oversubscription was fully taken up.
The source said that demand was very strong across the range of institutional and retail investors.
SM Prime’s bond issuance was composed of a base offer of P20 billion, with an oversubscription option of up to P5 billion.
Interest rates for the Series Y bonds due on 2028 was set at 6.0282 percent, Series Z due on 2031 at 6.2113 percent and Series AA due on 2035 at 6.4784 percent.
The offer period commenced on Feb. 12, 2025 and ended yesterday.
Proceeds of the issuance will be used for the company’s debt refinancing and capital expenditures.
For this year, SM Prime is looking to spend up to P110 billion for its capital expenditures.
In particular, the company is pouring in as much as P33 billion for its commercial property businesses this year to reflect the company’s sustained confidence on the economy.
The issuance is under the company’s P100 billion shelf registration of fixed rates bonds approved by the Securities and Exchange Commission in 2024.
The company was also able to raise P25 billion last year from the first tranche through an oversubscribed bond offering.
