SM PRIME Holdings, Inc. has set the interest rates for its planned P25-billion peso-denominated fixed-rate bond offering, which will be available from Feb. 12 to Feb. 18.
The property developer’s Series Y bonds will carry an interest rate of 6.0282% due in 2028, while the Series Z bonds are priced at 6.2113% due in 2031, according to a regulatory filing on Monday.
Meanwhile, the Series AA bonds will be priced at 6.4784% and will mature in 2035.
The bond offering consists of an aggregate principal amount of P20 billion, with an oversubscription option of up to P5 billion.
This issuance marks the second tranche of SM Prime’s P100-billion shelf registration of fixed-rate bonds approved by the Securities and Exchange Commission (SEC) on June 6 last year.
The P25-billion issuance received a PRS Aaa rating from the Philippine Rating Services Corp. (PhilRatings).
A PRS Aaa rating is the highest assigned by PhilRatings, signifying that the obligations are of the highest quality with minimal credit risk and that the issuer has an extremely strong capacity to meet financial commitments.
Last week, SM Prime announced a budget allocation of up to P33 billion this year to expand its commercial real estate portfolio.
Approximately P21 billion will be earmarked for increasing the gross floor area of the company’s malls, while P6 billion will be allocated for expanding its hospitality and meetings, incentives, conferences, and exhibitions operations.
Another P6 billion will be used for the development of new office towers and workspaces.
“We expect moderating inflation, easing interest rates, and election-related spending to fuel our growth in 2025,” said SM Prime President Jeffrey C. Lim.
On Monday, SM Prime shares declined by 4.09% or P1.05 to P24.60 apiece. — Revin Mikhael D. Ochave
