SM Prime Holdings Inc. has started a P15-billion retail bond offering to finance further expansion and existing debt, the company said on Thursday.
 
The offer period runs from November 4 to November 13. The aggregate principal amount of P15 billion consists of Series D and E shares. The company said it has an option to issue an additional P5 billion worth of bonds.
 
The company has set the interest rate for the peso-denominated Series D, 5.25-year bonds at 4.5095 percent a year, and the Series E, 10-year bonds at 4.7990 percent.
 
“The retail bond to be issued by SM Prime will largely support our funding for our mall expansion programs in the coming years,” SM Prime President Hans T. Sy said in an emailed statement.
 
The bonds due 2021 and 2025 are the second public-offering of peso-denominated retail bonds by the company, following a maiden issue of P20 billion in 5.5-, 7-, and 10-year bonds in 2014.
 
The joint issue managers and bookrunners are BDO Capital & Investment Corp., China Banking Corp., and First Metro Investment Corp.
 
They will also serve as joint lead underwriters with BPI Capital Corp., PNB Capital and Investment Corp., United Coconut Planters Bank, SB Capital Investment Corp., East West Banking Corp., RCBC Capital Corp., Land Bank of the Philippines and the Philippine Commercial Capital Inc.