Listed real estate giant SM Prime Holdings Inc. (SMPH) is set to issue P10 billion bonds, which forms part of its recently approved shelf-registration of P60 billion worth of fixed rate bonds at the Securities and Exchange Commission (SEC).
 
The SEC now allows companies to avail of shelf-registration program, which gives issuers the flexibility to offer and sell securities within the three-year period.
 
The Commission, in its recent en banc meeting, already approved SMPH’s plan to raise P60 billion worth of bonds via shelf-registration.
 
SMPH was also given the green light to conduct the initial tranche of the issuance, which involves selling as much as P10 billion worth of fixed retail bonds.
 
This is the first major deal approved by the SEC Commission in its new office within the Philippine International Convention Center (PICC) office in Pasay.
 
SM Prime intends to issue everything over a three-year period, starting with the offering of up to P5 billion worth of fixed rate bonds with maturity of 10 years. For this issuance, the company had set an over subscription option of up to P5 billion.
 
“The proceeds from the offering is intended to be used by the issuer to finance capital expenditures for the expansion of the Issuer’s commercial and hotel operations”, SMPH said.
 
The company’s commercial projects that will benefit from the issuance are SM Clark BPO Towers, SM Sta. Rosa BPO, SM Iloilo Tower, while the hotels it is referring to are Conrad Manila, SMX Conventions SRP Cebu, SM Hotels North EDSA, SM Hotels Mall of Asia, MOA Serviced Apartment.
 
SM Prime told the exchange that if the P5 billion over-subscripton option has also been fully taken up, its proceeds will be spent for its office buildings including Three E-com Center, Four E-com Center, SRP Cebu- Building 1, Cyber Building 1, Six E-Com Center.