300SM Prime logo, Pasay, Philippines. August 19, 2013

SM PRIME Holdings, Inc. has issued P15-billion fixed-rate bonds from its shelf registration of P100-billion securities.

In a disclosure to the stock exchange yesterday, the property developer said it has completed the first tranche of its debt securities program amounting to a total of P15 billion.

The offer comprised of five-year and seven-year bonds with interest rates of 4.8643% per annum and 5.0583% per annum, respectively.

In its offer supplement dated Dec. 4, 2019, SM Prime said proceeds from the issuance will be used to finance capital expenditures for the expansion of its mall operations.

About P14.76 billion is expected to be netted from the offer, which will be allocated to various mall expansion projects starting this year. SM Prime has a plan of launching 17 new malls from 2020 to 2022 and expanding SM City Baguio Mall this year.

The company has a one-time option to redeem any series of the bonds in whole before their maturity dates. For the five-year bonds, the redemption price is 101% on the sixth and seventh interest payment dates, and 100.5% on the eight and ninth interest payment dates. For the seven-year bonds, the redemption price is 101% on the 10th and 11th interest payment dates, and 100.5% on the 12th and 13th interest payment dates.

SM Prime tapped BDO Capital and Investment Corp. and China Bank Capital Corp. as joint issue managers for the issuance. Joint bookrunners and joint lead underwriters were BDO Capital and Investment Corp., China Bank Capital Corp., BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.

Earnings of SM Prime in 2019 rose 18% to P38.1 billion on the back of a 14% growth in revenues to P118.3 billion. Its shares at the stock exchange increased P1.50 or 5.88% to P27 apiece yesterday. — Denise A. Valdez