SM Prime raises P10 billion from issuance of fixed-rate bonds


Property developer SM Prime Holdings Inc. said Friday it raised P10 billion from the issuance of fixed-rate bonds on strong demand from retail and institutional investors.

The offering of P5 billion fixed-rate bonds with an oversubscription option for another P5 billion was eight times oversubscribed, it said.

It was the second issuance from the company’s P100-billion debt securities program under shelf registration approved by the Securities and Exchange Commission last year.

SM Prime said it raised P7.5 billion from the issuance of Series M bonds with an yearly interest rate of 2.4565 percent due 2023 and P2.5 billion from Series N which carries an interest rate of 3.8547 percent per annum.

SM Prime said it would use the net proceeds to finance the expansion of the mall and residential businesses.

SM Prime chief finance officer John Nai Peng Ong and Philippine Dealing & Exchange Corp. president and chief executive Antonio Nakpil led the first bond listing for the year on Friday through a virtual ceremonial event.

BDO Capital & Investment Corp. and China Bank Capital Corp. are the joint issue managers.  They are also the joint lead underwriters, along with BPI Capital, First Metro Investment Corp. and SB Capital Investment Corp.

SM Prime earlier said net income declined 48 percent in the first nine months of 2020 to P14.4 billion from P27.6 billion in the same period in 2019.

Consolidated revenues reached P60.7 billion in the nine-month period, down 29 percent from P85.0 billion a year ago.

The property developer ended 2020 with 76 shopping malls in the country and seven malls in China.

Share price of SM Prime rose 3 percent Friday to P38.35.

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