SM Prime sets interest rates for peso bonds

MANILA, Philippines —   Sy-led integrated property developer SM Prime Holdings Inc. has set the interest rates for its peso-denominated bonds to raise at least P20 billion.

The fixed-rate bonds are composed of Series V due 2027, Series W due 2029 and Series X due 2031.

Interest rates for Series V has been set at 6.5754 percent, Series W at 6.7537 percent and Series X at 6.965 percent.

SM Prime will issue P20 billion in aggregate principal amount, with oversubscription option of an additional P5 billion.

The bonds will be offered from June 7 to 14 and will be issued on June 24.

The issuance is part of SM Prime’s P100-billion shelf registration of fixed-rate bonds approved by the Securities and Exchange Commission on May 23.

The proceeds will be used to refinance the company’s debt and expand its property portfolio.

SM Prime said the bonds would be made available to investors through joint issue managers BDO Capital & Investment Corp. and China Bank Capital Corp., which are also joint bookrunners and joint lead underwriters together with BPI Capital Corp., EastWest Banking Corp., First Metro Investment Corp., Land Bank of the Philippines and SB Capital Investment Corp.

The bonds were rated PRS Aaa by Philippine Rating Services Corp. (PhilRatings).

PRS Aaa rating is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.