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SM Prime Sets Interest Rates for Php15 Billion Retail Bonds; Offer Period Started Yesterday

(05 November 2015. Pasay City, Philippines) SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property companies in Southeast Asia, has set the interest rates for its Peso-denominated Series D, 5.25-year retail bonds at 4.5095% p.a., and Series E, 10-year retail bonds at 4.7990% p.a.
 
SM Prime will issue an aggregate principal amount of Php15.0 billion of the Series D and Series E retail bonds, with an option to issue an additional amount of up to Php5.0 billion. The bonds will be offered to investors through underwriters starting November 4 to 13, 2015. The retail bonds are set to be issued to the bondholders on November 25, 2015.
 
Proceeds of the retail bond would be mostly used to the mall expansions and refinance loans of the company. By the end of 2015, SM Prime will increase its number of malls to 55 in the Philippines with an equivalent mall footprint of 7.3 million square meter in terms of gross floor area (GFA). Next year, SM Prime will open six new malls and expand two existing mall. Combined, the additional mall space is 571,631 square meters.
 
“The retail bond to be issued by SM Prime will largely support funding for our mall expansion programs in the coming years. This is a testament to management’s confidence that the economic growth of the Philippines will be sustained over the medium term and will eventually have a positive impact on the provinces as growth spreads to these areas.” SM Prime President Hans T. Sy said.
 
This series of SM Prime bonds due 2021 and 2025 is the second offering of Peso-denominated retail bonds to the public, subsequent to its successful maiden issue of Php20.0 billion in 5.5-, 7- and 10-year bonds in 2014. Similar to its previous bond issue, the SM Prime Series D and Series E retail bonds have been rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings), the highest rating assigned by PhilRatings. A rating of PRS Aaa is assigned to long-term debt securities with the smallest degree of investment risk, and denotes that SM Prime’s repayment capacity is extremely strong.
 
The bonds’ joint issue managers and joint bookrunners are BDO Capital & Investment Corporation, China Banking Corporation and First Metro Investment Corporation, which are also acting as joint lead underwriters together with BPI Capital Corporation, PNB Capital and Investment Corporation, United Coconut Planters Bank, SB Capital Investment Corporation, East West Banking Corporation, RCBC Capital Corporation, Land Bank of the Philippines and Philippine Commercial Capital, Inc. are participating underwriters for the bond issue.
 
SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.
 
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For further information, please contact:
 
Alexander Pomento
Vice President, Investor Relations
SM Prime Holdings, Inc.
E-mail: alex.pomento@smprime.com
Tel. no.: +632 862 7940
Date: 
Thursday, November 5, 2015