SM Prime Holdings, Inc. reported on Friday that it is preparing to sell up to P10 billion in fixed-rate bonds.

In its announcement to the stock exchange, SM Prime reported that it had filed an application with the Securities and Exchange Commission (SEC) for a license to issue fixed-rate bonds.

This will be the second tranche of bonds that are part of the three-year debt securities scheme of up to P100 billion. The registration of the bonds was approved by the SEC on 12 February 2020.

SM Prime said it is planning to sell P5 billion in bonds, with an oversubscription option of up to P5 billion. The bond will have a lifespan of 2.5 years and a maturity of 5 years.

In a separate disclosure, SM Prime reported that the Philippine Rating Services Company (Philratings) issued a PRS Aaa rating to the proposed bonds. Its outstanding bonds of P99.96 billion have retained its ranking of PRS Aaa.

“PRS Aaa is the highest rating assigned by Philratings, indicating that these obligations are of the highest quality with minimal credit risk and that the capacity of the issuing company to meet its financial obligations is extremely strong,” the company said.

PhilRatings offered a stable forecast for the planned and excellent SM Prime ratings.

On Friday, SM Prime’s shares finished 0.13 per cent higher at P37.90 a piece.

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