Shopping mall operator SM Prime Holdings Inc. said it has applied with the regulator to sell some P10 billion in fixed-rate bonds.
In its disclosure, the country’s largest property developer said it has filed its application for a permit to sell with the Securities and Exchange Commission for its issuance of P5 billion in debt paper with an oversubscription option of another P5 billion.
The said debt will have a tenor of 2.5 years and 5 years, the company said.
The said issuance is part of the company’s P100 billion in shelf registration approved by the SEC in February this year.
In March, just shortly after the declaration of lockdown in the country, SM Prime was able to raise some P15 billion in fixed-rate bonds, with a tenor of 5 and 7 years.
The proceeds will primarily finance capital expenditures for new malls and expansion projects.
SM Prime earlier said its income fell by half during the three quarters of the year ending September to P14.4 billion from last year’s P27.6 billion. The company said this was due to lockdown measures implemented to contain the spread of Covid-19.
Revenues reached P60.7 billion for the period, 29 percent lower from P85 billion last year, the company said.
“SM Prime’s core businesses, primarily its malls, showed slight recovery as the government started to re-open more industries to help the economy going in to the second half of the year,” Jeffrey C. Lim, SM Prime president, said.
“We have also implemented tighter controls on our expenses achieving a major reduction in operating expenses quarter on quarter. Nevertheless, we continue to provide further assistance to our various stakeholders as well as to the programs led by the government in containing the spread of the virus and strengthening back our economy.”
In January to September, revenue of SM Prime’s domestic mall business reached P18.3 billion, 57 percent lower than last year’s P42 billion. Rental income recorded P16.8 billion in revenues, down by more than half from P35.1 billion last year.
Meanwhile, SM Markets, the company’s food retail business, is extending its opening hours in select branches from as early as 6 a.m. to as late as 11 p.m. to provide customers the option to shop at off-peak hours.
These branches are SM supermarkets in Megamall, Makati, Cubao, North Edsa, Mall of Asia, Bicutan, Monumento, Cubao, Savemore Market Acacia, Amang Rodriguez, Anonas, Free Choice Mart, Laong Laan, Light, Nagtahan, Novaliches, Shoe Ave, Sta. Ana Manila and Visayas.
SM Markets is also providing online shopping in 26 branches in Metro Manila and Cebu.
Once ready for checkout, customers can choose to have their orders either prepared for pickup at the store or delivered to their homes or their loved ones with a minimal fee or free for orders worth a minimum of P1,500, the company said.