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.
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.
The offering follows SM Prime’s $350-million debut issuance of US dollar-denominated senior notes.
SM OFFICESIn a separate disclosure, SM Prime said its office arm SM Offices has increased its use of renewable energy, sourcing more than half of its power from certified renewable sources to reduce operational costs and align with sustainability-focused tenants.
By mid-2025, the company expects to have installed solar photovoltaic systems with a total capacity of 73 megawatts-peak (MWp) across 48 malls and office buildings.
SM said it is incorporating solar grids, sensor-enabled fixtures, and energy-efficient cooling systems in its properties to manage energy costs, enhance reliability, and support tenant sustainability goals.
“SM Offices not only supports but also goes beyond the Philippine government’s target of having 50 percent of the country’s power generation come from renewable sources by 2040,” Vice-President and Head of SM Offices Alexis L. Ortiga said.
The Department of Energy’s National Renewable Energy Program (NREP) 2020-2040 seeks to increase renewable energy’s share in the country’s power generation mix to 35% by 2030 and 50% by 2040.
Several of SM Prime’s major buildings — including Three E-Com and Four E-Com in the Mall of Asia Complex, Aura Tower near SM Aura Premier, Mega Tower in Ortigas, and North Towers in Quezon City — have earned LEED Gold certification from the US Green Building Council.
The company said its One E-Com, Two E-Com, and Five E-Com buildings are currently pursuing LEED O+M certification, which recognizes sustainable operation and maintenance practices that improve energy and water efficiency, indoor air quality, and occupant well-being.
“SM Offices remains resilient by integrating sustainability initiatives into its core strategies. Our offices are located closer to where people live, helping reduce travel time and emissions, and we are expanding renewable energy use and EV charging infrastructure to support a lower-carbon economy,” Mr. Ortiga said.
At the local bourse on Wednesday, shares in SM Prime fell by 0.87%, or 20 centavos, to close at P22.70 apiece. — Alexandria Grace C. Magno
