SM Prime raising P25B from fixed-rate bonds

SM Prime Holdings Inc., the integrated property developer led by the Sy family, is set to raise up to P25 billion through its latest peso-denominated fixed-rate bond offering.

In a regulatory filing on Monday, the company confirmed interest rates of 6.0282 percent for Series Y due 2028, 6.2113 percent for Series Z due 2031, and 6.4784 percent for Series AA due 2035.

The offering consists of P20 billion, with an oversubscription option of up to P5 billion, and will be available from 12 to 18 February.

The bonds have been assigned a PRS Aaa rating by Philippine Rating Services Corp. (PhilRatings), the highest credit rating, indicating “minimal credit risk” and “extremely strong” capacity to meet financial commitments.

The issuance is part of SM Prime’s P100-billion debt securities program, approved by the Securities and Exchange Commission in June 2024. The proceeds are expected to support the company’s expansion initiatives and strengthen its financial position.

SM Prime has earmarked up to P33 billion this year to expand its commercial property portfolio. The majority of the budget, about P21 billion, will be allocated to the expansion and redevelopment of its mall network — a move expected to benefit Filipino mall-goers.

The company plans to add 205,400 square meters of gross floor area (GFA) through new developments, while 124,488 square meters of existing space will undergo renovation. By year-end, SM Prime’s total mall GFA is projected to reach 8.08-million square meters.

With 87 shopping malls nationwide, SM Prime aims to capitalize on the expected surge in consumer confidence and foot traffic.