Property giant SM Prime Holdings Inc. has set the interest rates for its peso-denominated issue, proceeds from which will be used to fund its continued expansion, especially outside Metro Manila.
SM Prime is offering an initial P15 billion worth of five-year and seven-year fixed rate bonds with an option to issue an additional P5 billion.
The interest rates for the Series K and Series L bonds have been set at 4.8643% and 5.0583% per annum, respectively. The bonds are set to be issued on March 25.
“SM Prime is set to establish further integrated property developments in various developing provincial cities in the Philippines. The proceeds from the retail bond will enable the company to pursue it expansions plans for its core businesses, primarily of its malls projects, which is one of the main growth drivers of the company,” said SM Prime president Jeffrey C. Lim.
The bonds to be issued have received the top credit rating of PRS Aaa from the Philippine Rating Services Corp. The rating, which is given to long-term debt securities with the smallest degree of investment risk, indicates SM Prime’s strong capability to meet its financial commitment.
Among the joint issue managers for the bond offer are BDO Capital & Investment Corp. and China Bank Capital Corp.