Mall operator SM Prime Holdings Inc. has generated P5 billion in fresh funds from the issuance of floating and fixed rate notes, the company said in a statement Thursday.

SM Prime said the offer was oversubscribed, with 11 primary institutional lenders participating.

‘The strong response by the market to this financing illustrates the high credit quality of SM Prime as well as the local market’s confidence in (the company),’ it said.

BDO Capital & Investment Corp. arranged the offer while PNB Capital & Investment Corp. acted as co-lead manager.

SM Prime said proceeds from the fund-raising activity will be used for its capital expenditures and general corporate requirements.

SM Prime plans to open three new malls in Camarines Sur, Cavite and Las Piñas as well as expand its existing SM City Rosales mall in Pangasinan this year.

By end-2009, the company will have 36 local malls in its portfolio, with an estimated gross floor area of 4.5 million square meters. Including its malls in China, the GFA will reach 4.9 million sqms