Mall operator SM Prime Holdings Inc. plans to borrow P5 billion mainly to refinance debts maturing next year, ahead of an expected further tightening in credit markets, a company official said.

The plan is to replace a US$ 70-million obligation— about P3.4 billion at current exchange rates—that will fall due in October, SM Prime executive vice president Jeffrey Lim said.

Part of the funds will be used to put up new malls next year in Rosario town in Cavite province, in Naga City in Camarines Sur province and in Las Piñas City in Metro Manila.

SM Prime is not scrimping on its budget of P6 billion for mall expansion next year, Lim said. “We can’t stop despite the crisis,” he said. “2009 will be more challenging, but we are seeing double-digit growth in certain segments.”

Shoemart Inc. senior vice president for operations Jorge Mendiola, who oversees the SM group’s 34 department stores, said retail sales in the department store operations grew by 19 percent on average in October and November and by more than 20 percent so far from Dec. 1 to 7, based on unaudited results.

Mendiola said the growth was due to higher spending by overseas Filipino workers as they tended to buy more due to a weaker peso.

“After [the end of] the rice crisis, oil prices have also tapered off and this is helping consumer spending,” he said.

SM Prime announced Wednesday it would open its 33rd mall on Friday, in Baliwag town in Bulacan province, north of Manila.

The mall, SM City Baliwag, occupies 93,000 square meters of land and has a gross floor area of 61,554 sq. m. It has a total leasable area of 42,171 sq. m. It is the last SM mall to be opened in 2008.