SM Prime Holdings Inc. has shelved plans to raise up to P18 billion from the debt market amid challenging financing conditions.

In a disclosure on Wednesday, the Sy Family-led property giant said it has deferred the fourth tranche of its fixed-rate bond program, which consists of up to P12 billion in bonds and an oversubscription option of up to P6 billion. 

The offer included 5.75-year Series AE bonds due 2032 and 10-year Series AF bonds due 2036.

The company pointed to prevailing market conditions but did not specify when it intends to revive the fundraising exercise.

“The Company will provide the Exchange with updates on any future plans relating to the bond offer in accordance with applicable disclosure requirements,” the company said.

While the deferment does not affect the company’s operations, it removes a near-term source of funding that could have been used for expansion, capital expenditures, or refinancing activities.

To recall, SM Prime is set to open the SM Seaside Cebu Arena this month and SM Nuvali in Laguna later this year, while redeveloping Susana Heights Village to strengthen its foothold in the premium residential market. 

Last year, the company saw a 7 percent increase in net income to P48.8 billion, supported by growth across its malls, residential, office, hotel, and convention businesses.