PROPERTY developer SM Prime Holdings Inc. said it will start its P25-billion bond issue later in the week.

The company said on Monday the 5.5-year retail bonds will have a yield of 5.1 percent, the seven-year debt at 5.2006 percent, and the 10-year tenor at 5.7417 percent.

SM Prime, which operates 49 malls in the country and in China, will issue an aggregate principal amount of P15 billion of the debt papers, with an option to issue an additional amount of up to P10 billion.

“The bonds are scheduled to be offered by SM Prime to investors through underwriters from August 13 to 22, 2014. The retail bonds are set to be issued on September 1, 2014,” the company said.

This series of company bonds—due in 2020, 2021 and 2024—comprise the maiden offering by SM Prime of peso-denominated retail bonds.

The bonds have been rated the highest PRSAaa rating by the Philippine Rating Services Corp. A PRSAaa rating denotes that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment is extremely strong.

The joint issue managers and joint bookrunners of the deal are BDO Capital and Investment Corp. and First Metro Investment Corp. (FMIC), while joint lead underwriters are BDO Capital, BPI Capital Corp., China Banking Corp. and FMIC.