MANILA, Philippines — SM Prime Holdings Inc. is offering a new tranche of retail bonds to investors to raise as much as P20 billion.
Local credit watchdog Philippine Rating Services Corp. has given SM Prime’s proposed issuance a credit rating of PRS Aaa, the highest on its rating scale.
The offer represents the initial tranche of the company’s three-year debt securities program amounting to P100 billion under shelf registration. The bonds were also issued a stable outlook, which indicates that the rating is likely to be maintained or remain unchanged in the next 12 months.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The issuer’s capacity to meet its financial commitment is extremely strong.
The rating reflected SM Prime’s strong brand equity, solid track record across a well-diversified portfolio, sound financial profile, supported by strong recurring income and its highly-experienced board and management.
SM Prime is one of the biggest property developers in the Philippines, with a well-diversified portfolio that has grown to include malls, residences, offices, hotels and convention centers.
It is the country’s largest mall developer/operator. As of the end of September, SM Prime had 73 Philippine malls with a gross floor area of 8.5 million square meters and 18,716 tenants.
Average daily pedestrian count for the malls was 4.2 million. Average mature mall occupancy rate was a high 97 percent as of Sept. 30.
SM Prime is also a leading developer of residential condominiums and single-detached house and lots. Since 2003, the company has launched 136,994 residential units.
As of the end of September, SMPH had 12 office buildings with a combined GFA of 662,000 sqm. The occupancy rates of these buildings ranged from 97 percent to 100 percent, indicating strong demand for the group’s office space.
SM Prime also had eight hotels, with more than 1,900 rooms, as well as four SMX convention centers and three Megatrade halls with more than 37,000 sqm of leasable space.
It has a total landbank of 1,748 hectares located in emerging progressive cities across the country, good for development for the next five to seven years.