SM Prime Holdings Inc., the country’s leading integrated real estate developer, hired four banks to handle the sale of fixed-rate bonds worth P10 billion in July.
 
A report filed with the Securities and Exchange Commission showed SM Prime tapped BDO Capital and Investments Corp., BPI Capital Corp., Chinabank Capital and First Metro Investments Corp. as joint issue managers and joint lead underwriters for the offering.
 
SM Prime will sell P5 billion worth of fixed-rate bonds with an oversubscription option for  another P5 billion under the property firm’s P60-billion fixed-rate bonds shelf registration it earlier filed with SEC.
 
Offer period for the bond offering due 2026 was set between last week of June and early part of July.
 
The bonds will be listed with the Philippine Dealing and Exchange Corp. and shall be issued in scripless form in minimum denominations of P20,000 each, and in multiples of P10,000. 
 
Proceeds from the fund raising activity will be used to finance capital expenditures for the expansion of the group’s commercial and hotel operations.
 
SM Prime is currently building office buildings catering to business process outsourcing at its malls in Clark, Sta Rosa (Laguna) and Iloilo.  
 
It is also constructing four new hotels, including the 347-room Conrad Manila at Mall of Asia complex in Pasay City, the 200-room SM Hotels in SM North Edsa and another 250-room SM Hotels in Mall of Asia.  It is building another 200-room serviced apartment also at Mall of Asia.
 
SM Prime’s P10-billion bond sale earlier obtained the highest credit rating of  PRS Aaa from Philippine Rating Services Corp.
 
Obligations rated “PRS Aaa” are deemed of the highest quality with minimal credit risk. This also means a firm’s capacity to meet its financial obligation is “extremely strong.
 
SM Prime operates four core businesses: malls, residential, commercial and hotel and convention centers.
 
The group had 56 malls operating in the Philippines, with a total gross floor area  of 7.3 million square meters, as of end-March.
 
The company also operates six malls in China, in the cities of Xiamen, Jinjiang, Chengdu, Suzhou, Chongqing and Zibo.