MALL operator SM Prime Holdings Inc., the country’s largest property developer, said it received strong demand on its P10-billion retail bonds, which the company said will have a yield of 4.2005 percent per year.
SM Prime will offer the debt to investors starting today (July 13) through July 19.
This series of SM Prime bonds is the third offering of peso-denominated retail bonds to the public. “The retail bond to be issued will sustain SM Prime’s development road map, which is geared toward provincial expansions, mostly allotted on malls and offices developments. We remain optimistic on the huge growth potential in the provinces, where large areas remain unserved,” SM Prime President Hans Sy said in a statement.
BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp. and First Metro Investment Corp. were picked as its joint issue managers, joint lead underwriters and joint bookrunners. East West Banking Corp., PNB Capital and Investment Corp. and United Coconut Planters Bank are participating underwriters for the bond issue.
Last week the Securities and Exchange Commission has approved the shelf registration of P60 billion worth of fixed-rate bonds of SM Prime. The P10-billion offering is part of the total shelf-registration amount.
Proceeds of the offering will be used to fund its capital expenditures for the year, mainly on commercial and hotel operations.
SM Prime’s parent, SM Investments Corp. (SMIC), said it secured regulatory approval for the merger of the Sy family-owned specialty stores into SM Retail Inc.
Under the terms of the deal, over 1,300 retail outlets will be folded into SM Retail in exchange for shares of stock in SM Retail’s expanded net assets.
To be merged with SM Retail’s food and department stores are a portfolio of brands, such as Ace Hardware, Watsons, Toy Kingdom, SM Appliances, Our Home, Baby Company, Kultura, Sports Central, Pet Express and other specialty retailers.
“The merger is seen to be both value and earnings accretive given the stores’ competitive position, synergies with SM Supermalls and strong growth potential,” the company said
Macquarie Capital was the appointed advisor of SMIC for the merger.