Shopping mall giant SM Prime Holdings Inc. said it has raised P3 billion from the issuance of fixed rate notes.

In a disclosue to the Philippine Stock Exchange, SM Prime said it has completed the offer which attracted at least 16 primary institutional lenders.

The notes, which have maturity of five, seven and 10 years from issue date, were oversubscribed.

“The strong response by the market to this financing illustrates the high credit quality of SM Prime  as well as the local market’s confidence in the company,�? SM Prime said.

First Metro Investment Corp. arranged the deal.

Proceeds from the offering will be used to fund SM Prime’s ongoing capital expenditures and general corporate requirements.

SM Prime has earmarked P6 billion this year for the construction of new shopping malls which will rise in Marikina, Bulacan and Pangasinan.  It is also expanding three of its malls-SM Megamall, SM Fairview and SM North Edsa.

SM Marikina will provide an additional 122,000 square meters of  gross leasable space, SM Rosales (31,000 square meters) and SM Baliuag (61,000 square meters).

The company expects to end the year with a total of 33 malls with a gross floor area of 4.2 million square meters from 3.9 million square meters in end- 2007.