SM Prime gets go signal for P100-billion bond offering

MANILA, Philippines – The Securities and Exchange Commission (SEC) gave the go signal for property giant SM Prime Holdings to sell a whopping P100 billion worth of bonds in the next 3 years for more malls and other expansion projects.

SM Prime intends to offer an initial P15-billion Series K and Series L bonds, with an oversubscription option of P5 billion. The Series K bonds have a tenor of 5 years and the Series L bonds have a tenor of 7 years.

The bonds, which are under the SEC's shelf registration program, will be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter. They will be listed and traded in denominations of P10,000 on the Philippine Dealing and Exchange Corporation.

The SEC said that the remaining P80 billion from SM Prime's self registration may be offered within 3 years from its approval.

BDO Capital and Investment Corporation, China Bank Capital Corporation, BPI Capital Corporation, East West Banking Corporation, First Metro Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation have agreed to act as joint lead underwriters for the offer.

SM Prime was recently given approval for a 360-hectare reclamation project in Pasay City. It connects to the Mall of Asia Complex, which is another reclamation project. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.

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