SM Prime Holdings, Inc. has set the coupon rates for its peso-denominated 5.25-year tenor series-D bond at 4.5095 percent, and 4.799 percent for the 10-year series-E bond.
 
A total of P20 billion bond may be raised from the debt issuance that is divided into an initial P15 billion and another P5 billion to cover oversubscription.
 
“The bonds will be offered to investors through underwriters starting Nov. 4 to 13, 2015. The retail bonds are set to be issued to the bondholders on Nov. 25, 2015,” SM Prime said.
 
Proceeds of the bond would mostly be used to expand malls and refinance loans.
 
SM Prime said it expects to close 2015 with a total of 55 Philippine malls with about 7.3 million square meters of gross floor area (GFA).
 
Next year, SM Prime will open six new malls and expand two existing mallsfor an additional 571,631 sq. m. in GFA.
 
“The retail bond to be issued by SM Prime will largely support funding for our mall expansion programs in the coming years. This is a testament to management’s confidence that the economic growth of the Philippines will be sustained over the medium term and will eventually have a positive impact on the provinces as growth spreads to these areas,” said Hans T. Sy, SM Prime president.
 
This series of bonds, due 2021 and 2025, is its second offering of peso-denominated retail bonds, after the maiden issue of P20 billion bonds carrying tenors of 5.5, seven and 10 years last year.