LISTED PROPERTY developer SM Prime Holdings, Inc. listed its retail bonds on Friday, becoming the country’s first 2021 bond listing at the Philippine Dealing & Exchange Corp. (PDEx).
In a regulatory document, the company reported that it conducted a virtual listing ceremony of its new fixed-rate bonds, the M and N set, which provided P10 billion – or an aggregate principal amount of P5 billion – and an oversubscription option of P5 billion.
The interest rate of the peso-denominated series M bond of SM Prime is 2.4565 per cent due in 2023, whereas that of the series N is 3.8547 per cent due in 2026.
“This is the second drawdown of the company’s debt program of P100 billion securities registered with the Securities and Exchange Commission,” the disclosure stated.
Joint problem managers for the bid are BDO Capital & Investment Corp. and China Bank Capital Corp. The two firms now enter BPI Finance, First Metro Investment Corp., and SB Capital Investment Corp. as joint venture underwriters.
Previously, SM Prime Chief Financial Officer John Nai Peng C. Ong claimed that the profits from retail bonds will finance the company’s growth plans. The M and N series of retail bonds obtained a ranking from the Philippine Rating Services Corp. of “PRS Aaa,” the maximum rating given by the local debt watchdog.
As of September 2020, SM Prime’s combined net profits decreased by 48% to P14.4 billion. The company’s combined sales were down 29 percent to P60.7 billion.