SM Prime seeks P18B via retail bond offer
SM Prime Holdings Inc. has applied with regulators to raise up to P12 billion through a new offering of fixed rate retail bonds, with an option to increase the size by another P6 billion.
In a disclosure on Thursday, the Sy family-led property giant said the planned issuance would consist of five-year and nine-month Series AE Bonds due in 2032 and 10-year Series AF Bonds due in 2036.
If fully exercised, the over subscription option would bring the total size of the planned issuance to as much as P18 billion. This would boost the company’s fundraising capacity under the offer.
The proposed deal marks the fourth tranche under the company’s P100-billion shelf registration of fixed rate bonds.
The Securities and Exchange Commission approved this in 2024, allowing the firm to tap the debt market in multiple tranches over time.
The latest fundraising plan underscores SM Prime’s continued access to capital markets. The firm is pursuing funding flexibility for its expansion and operational requirements.
Retail bonds are typically offered to a broad base of investors. They provide companies with longer-term funding while giving investors fixed income returns.
SM Prime did not disclose further details such as coupon rates or offer period. These are usually finalized after regulatory approval and book-building.
SM Prime is one of the country’s largest integrated property developers. Its businesses span malls, residences, offices, hotels and convention centers.
The firm has been a regular issuer in the local bond market, leveraging its strong balance sheet and investor base to support ongoing capital expenditures.
The planned issuance, once approved, will add to the company’s funding arsenal as it continues to expand its property portfolio across key segments.
SM Prime posted a first-quarter net income of P11.66 billion this year. This was largely flat from the year-ago P11.65 billion, as higher costs offset modest revenue growth. Also, SM Prime is expanding its regional footprint with the planned opening of SM Nuvali, a flagship mall in Sta. Rosa, Laguna, by end-2026.
SM Nuvali will be the first of five flagship malls planned annually from 2026 to 2030.
