SM Prime eyes growth with dollar bonds

Sy-led property developer SM Prime Holdings Inc. is set to raise fresh funds through a United States dollar-denominated bond issuance to support its expansion.

The company said in a disclosure on Monday that it has mandated HSBC, J.P. Morgan, Standard Chartered Bank and UBS as joint lead managers and joint bookrunners, with BDO Capital and Chinabank Capital as joint domestic managers, “to arrange a series of fixed income investor calls in Asia and Europe commencing on 8 September 2025.”

“A USD-denominated benchmark-sized Regulation S offering of 5-year senior notes (the ‘Notes’) by SMPHI SG Holdings Pte. Ltd. (the ‘Issuer’) guaranteed by SMPH may follow, subject to market conditions,” the company said.

The issuance will be drawn from SM Prime’s SG Holdings’ $3-billion Euro Medium Term Note Program.

Legal advisers of the issuer and guarantor are SyCip Salazar Hernandez & Gatmaitan for Philippine law and Latham & Watkins LLP for English law.

Picazo Buyco Tan Fider Santos & Dee will act as Philippine legal adviser for the joint lead managers and joint bookrunners, while Linklaters Singapore Pte. Ltd. will cover English law.

Last year, SM Prime Holdings Inc. and its parent SM Investments Corp. raised $500 million in their largest overseas bond sale in a decade.

P150-B expansion fundraising

The new fundraising is expected to support the company’s P150-billion expansion plan, which covers the redevelopment of 16 malls, construction of 14 new ones, and opening of five flagship malls by 2030.

SM Prime has also set aside P100 billion in capital spending this year for property developments across its portfolio.

The company continues to build on its strong financial performance, reporting a record net income of P24.5 billion in the first half of the year, up 11 percent from P22.1 billion a year ago, on the back of robust mall rentals, real estate sales, and consumer-led businesses.

Consolidated revenues increased 5 percent to P68 billion from P64.7 billion.

Rental income from malls, offices, hospitality, and MICE contributed 60 percent of revenues, real estate accounted for 29 percent, while cinemas, food and beverage, amusement, and other businesses made up 11 percent.

EBITDA climbed 10 percent to P41.6 billion, while operating income rose 11 percent to P34.4 billion. Malls remained the biggest earnings driver, contributing P17 billion or 69 percent of the total, up 14 percent year-on-year.

Residential income increased by P5.1 billion, or 21 percent, while offices and warehouses generated P1.7 billion, representing a 9 percent rise. Hotels and convention centers earned P635 million, up 20 percent.