MANILA, Philippines – SM Prime Holdings Inc., the Philippines’ largest mall operator, intends to raise P5 billion next year for its capital investments as well as refinance its maturing obligations.

The company plans to refinance its obligation by seeking to reduce interest rates on a US$ 70 million syndicated loan that will fall due by October next year.

The company may raise cash by the second half of next year, Lim said.

Although the mall operator remains optimistic, SM Prime is still cautious given the current economic challenges. Even though revenues are expected to rise by double-digits next year, 2009 will be “challenging,’ Jeffrey C. Lim, SM Prime Holdings Inc. executive vice president said.

“While we are optimistic, we are more careful,’ said Lim. “New projects will take time of at least two years to generate profit.’

For next year, the company intends to spend P6 billion for its capital expenditures to sustain plans of increasing its floor area by opening more malls across the country, Jeffrey C. Lim, SM Prime Holdings Inc. executive vice president said.

By the end of next year, the company intends to have a gross floor area of 4.7 million square meters. For 2008, SM Prime currently has 4.3 million square meters.

Approximately three SM malls are set to be opened next year—one in Naga City, Commonwealth Ave. in Quezon City, and Pamplona in Las Pinas. Each of these malls will measure between 50,000 to 110,000 square meters, Lim said.

On Friday, the company is set to open its 33rd mall in Baliuag, Bulacan.