SM Prime returns to local bond market with P17-B offer

Real estate giant SM Prime Holdings Inc. plans to raise up to P17 billion from the domestic bond market next month as it beefs up its coffers for the expansion of its retail empire.

The Sy family-led developer on Wednesday said the issuance would be composed of Series AB bonds at 5.9096 percent due in 2030, Series AC bonds at 6.0858 percent due in 2032 and Series AD bonds at 6.2855 percent due in 2035.

SM Prime will issue a principal amount of P12 billion, with an oversubscription option of up to P5 billion in case of high demand, the company noted in a regulatory filing.

The offer period will run from Nov. 3 to 7.

Philippine Rating Services Corp. issued a PRS Aaa rating on the bonds, suggesting that these are of high quality with minimal credit risk. It also means SM Prime, as the issuer, has an “extremely strong” capacity to meet its financial obligations.

SM Prime’s upcoming issuance follows its recent $350-million bond offer as part of its war chest expansion.

The offering—the third tranche of SM Prime’s P100-billion shelf-registered fixed rate bonds approved in 2024—comes at a time when SM Prime is pursuing an aggressive retail expansion.

Earlier this month, SM Prime officially opened SM City La Union, its 89th domestic mall.

The 51,000-square-meter mall stands on Diversion Road in Barangay Biday, San Fernando City, with 80 percent of its gross leasable space already occupied.

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SM City La Union likewise boasts of an outdoor “sandbox” venue for sports tournaments, mini concerts and other community activities.

This is as the SM Group positions its malls as “entertainment hubs” to target the younger generation looking for more experiential offerings.

SM Prime also plans to open five flagship malls until 2030. These will be built in: Sta. Rosa, Laguna (2026); Harrison Plaza in Manila (2027), Malolos, Bulacan (2028); another mall in Cavite (2029) and Pasay City (2030).

The developer, whose portfolio also includes hotels and offices, aims to have 100 domestic malls by 2027.