SEC okays SM Prime’s P100-B debt papers
Credit to Author: Tyrone Jasper C. Piad| Date: Wed, 12 Feb 2020 17:02:17 +0000
THE Securities and Exchange Commission (SEC) has approved SM Prime Holdings Inc.’s planned issuance of P100 billion in debt securities in the next three years to generate funds for its construction and expansion projects.
In a statement on Wednesday, the regulator said it greenlighted the offering of these securities under shelf registration during a meeting on Tuesday, allowing the Sy-led property developer to issue these in several tranches.
The initial tranche is made up of P15 billion worth of five-year Series K Bonds and seven-year Series L Bonds, with an overallotment option of up to P5 billion.
SM Prime eyes to raise P14.79 billion from the base offer and P4.94 billion from the overallotment option.
Proceeds will be used as funds to build and upgrade malls.
Each bond will be issued in minimum denominations of P20,000 and in multiples of P10,000 thereafter. The bonds will be listed and traded on the Philippine Dealing and Exchange Corp.
The joint lead underwriters are BDO Capital & Investment Corp., China Bank Capital Corp, BPI Capital Corporation, East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.
SM Prime’s net income rose by 18 percent to P27.6 billion in the first nine months in 2019 from P23.44 billion in the same month the year before on the back of the robust performance of its mall and residential segments.
Mall revenues increased by 8 percent to P42.03 billion, while residential revenues climbed by 26 percent to P31.92 billion as of end-September.
SM Prime shares dropped by 40 centavos or 0.94 percent to finish at P42.30 apiece on Wednesday.