SM Prime Holdings Inc., the property-development arm of the Sy family, on Tuesday set the interest rates for its peso-denominated series G, seven-year retail bonds at 5.1683 percent per year.

SM Prime is selling an aggregate principal amount of P15 billion of the series G bonds, with an option to issue an additional amount of up to P5 billion.

SM Prime’s rate is higher than the secondary market trading rate of the five-year bond, currently at 4.6143 percent. The retail bonds will be offered by SM Prime to investors through underwriters from May 4 to May 11, following the receipt of the permit to sell from the Securities and Exchange Commission.

The retail bonds are set to be issued on May 18.

“The proceeds of the retail bonds will enable SM Prime to pursue expansions of our mall and residential businesses, the growth drivers of the company,” SM Prime President Jeffrey Lim said.

This series of SM Prime bonds due 2024 is the fourth offering of peso-denominated retail bonds to the public. Similar to its previous bond issues, SM Prime’s current bonds have secured highest rating from a local ratings firm.

The bonds’ joint issue managers are BDO Capital and Investment Corp. and China Bank Capital Corp., which are also acting as joint lead underwriters and joint bookrunners together with BPI Capital Corp., PNB Capital, First Metro Investment Corp. and SB Capital Investment Corp.