Property developer SM Prime Holdings Inc. said Friday it is raising up to P35 billion from the issuance of fixed-rate bonds.
SMPH said in a disclosure to the stock exchange it would offer up to P25 billion in fixed-rate bonds with an over-allotment option for another P10 billion. The bonds will have maturities of 2.5 years, 4 years and 6 years.
The bonds will be the fifth tranche from the company’s P100-billion three-year bond shelf registration program approved by the Securities and Exchange Commission in 2020.
Philippine Ratings Services Corp. has assigned a rating of PRS Aaa to SMPH’s proposed bond offering.
PRS Aaa is the highest rating assigned by PhilRatings and denotes that such obligations are of the highest quality with minimal credit risk. It also indicates that the issuing company capacity to meet its financial commitment on the obligations is extremely strong.
SMPH earlier reported plans to spend P80 billion in capital expenditures in 2023 primarily to roll out more residential and shopping malls.
SMPH plans to open three new malls and expand five existing ones this year, which will add 200,000 square meters of gross floor area.
SMPH had 9 million sq. m. of GFA across 82 shopping malls as of end-2022.
SMPH also operates seven malls in China with total GFA of 1.4 million sq. m.
SMPH has 328 hectares of property in its land bank that could be developed over the next five to seven years.