SM PRIME Holdings, Inc., owned by the country’s richest man Henry Sy, Sr., kicks off today its latest retail bond offer worth up to P20 billion, with robust demand seen for the debt securities.

The integrated property developer told the stock exchange the interest rate for the peso-denominated Series G bonds was set at 5.1683% a year on Tuesday.

SM Prime is issuing P15 billion seven-year bonds, with an option to upsize the offer by up to P5 billion. This marks the fourth offering of peso-denominated retail bonds to the public.

Strong demand is expected, with the base offer already fully covered ahead of the offer period, BDO Capital and Investment Corp. President Eduardo V. Francisco said in a mobile phone message.

Asked if the offer will be increased to P20 billion, China Bank Capital Corp. Managing Director Virgilio O. Chua said: “Most likely we will do it.”

BDO Capital and China Bank Capital are joint issue managers of the bond issue.

The offer period will run from May 4 to May 11, following the receipt of the Permit to Sell from the Securities and Exchange Commission. The retail bonds will be issued on May 18.

“The proceeds of the retail bonds will enable SM Prime to pursue our expansions of mall and residential businesses, which are the growth drivers of the company,” SM Prime President Jeffrey C. Lim was quoted in the statement as saying.

SM Prime is allocating P100 billion in capital expenditures in the next two years to expand its mall and residential property businesses.

Similar to its previous bond issues, the SM Prime Series G bonds have secured a PRS Aaa rating from Philippine Rating Services Corp. The highest rating assigned by the debt watcher, the Triple-A rating is given to long-term debt securities with the smallest degree of investment risk, indicating the issuer’s strong capability to meet its financial commitment.

Joining BDO Capital and China Bank Capital as joint lead underwriters and joint bookrunners are BPI Capital Corp., PNB Capital and Investment Corp., First Metro Investment Corp., and SB Capital Investment Corp.

Shares in SM Prime lost a centavo or 0.33% to end at P30.60 apiece.