Property developer seeks P17-B proceeds from peso bond issuance

A major property developer plans to raise as much as P17 billion via a fixed-rate bond sale to support ongoing expansion across malls, offices, and residential projects.

SM Prime Holdings, Inc. said in a stock exchange disclosure the offer consists of a P12-billion base tranche with an oversubscription option of up to P5 billion. The issue will be the third tranche under its P100-billion shelf registration approved by the Securities and Exchange Commission in 2024.

Credit watcher PhilRatings assigned the proposed issuance a PRS Aaa rating with a stable outlook, its highest grade indicating minimal credit risk and an extremely strong capacity to meet financial obligations. PhilRatings likewise affirmed the PRS Aaa on P141.5 billion of the company’s outstanding bonds.

The domestic fundraising follows SM Prime’s $350-million, five-year US dollar notes issued last week at a 4.75% coupon, which the company said was nearly three times oversubscribed.

Proceeds from both the peso and dollar bond sales are expected to fund the developer’s pipeline under a P100-billion 2025 capital expenditure program, focused on rolling out additional lifestyle malls and residential projects nationwide.