SM PRIME Holdings Corp. (SM Prime) has listed its P25-billion fixed-rate retail bonds on the Philippine Dealing & Exchange Corp. (PDEx).
This issuance is the second tranche of SM Prime’s P100-billion shelf registration of fixed-rate bonds, which was approved by the Securities and Exchange Commission (SEC), the company said in a regulatory filing on Wednesday.
The listed property developer said the issuance consists of Series Y, Z, and AA bonds, maturing in 2028, 2031, and 2035, respectively.
Under its application submitted to the SEC last year, SM Prime sought approval to raise up to P25 billion, with an oversubscription option of up to P5 billion.
The offering includes three-year Series Y bonds due in 2028, six-year Series Z bonds due in 2031, and 10-year Series AA bonds due in 2035.
On Monday, the company announced plans to allocate P100 billion in capital expenditures (capex) this year, with the majority directed toward residential projects and integrated property developments.
Capex for 2024 will primarily be allocated to malls, residential properties, and integrated developments, SM Prime said.
For 2024, Sy-led SM Prime recorded a 14% increase in consolidated net income, reaching a record-high P45.6 billion, up from P40 billion in 2023. The growth was driven by strong holiday spending, the opening of two new malls, and higher real estate sales.
Consolidated revenue also rose by 10%, reaching an all-time high of P140.4 billion in 2024, compared to P128.1 billion in 2023, due to increased rental income, real estate sales, and revenues from services and experiential offerings.
At the local bourse on Wednesday, shares in the company gained 90 centavos, or 3.83%, to close at P24.40 apiece. – Ashley Erika O. Jose
