High demand seen for SM Prime’s maiden bond sale

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SM CenterThe issue manager of SM Prime’s maiden bond sale expects brisk demand for the Henry Sy-led property firm’s offering. First Metro Investment Corp (FMIC) Roberto Juanchito said that the roadshow for the $575 million debt offering of SM Prime Holdings Inc at the SMX Convention Center in Pasay City was “very well attended.”

SM Prime is selling fixed-rate retail bonds with terms of five and a half years, seven years and 10 years. When asked if SM Prime may raise the full $575 billion, Dispo said: “All the big underwriters are supporting so there’s a high chance that the desired amount can be mobilized and raised from the market.”

FMIC is the sole issue manager. It will be joined by joint lead underwriters BDO Capital and Investments Corp, China Bank and BPI Capital Corp.

Investors are seen picking up SM Prime’s debt papers since this will mark the company’s maiden bond offering, Dispo said.

“SM Prime’s business model is very solid. They are into residential, retail, tourism and leisure and resorts. Essentially, the Philippine economic growth story is weaved into their business model,” he said.

Proceeds of the debt issuance will bankroll capital expenditures for its malls, offices and hotel operations. The real estate firm set a capex budget of $1.6 billion this year.

After the debt sale, SM Prime is looking at a syndicated loan of up to $300 million later this year to bankroll land banking initiatives and the development of its malls in China.

SM Prime is the holding firm for the mall, residential, office and leisure businesses of the Sy family following a corporate restructuring exercise approved by the Securities and Exchange Commission in October last year. With the consolidation of the Sy family’s real estate assets, SM Prime is now in a position to undertake larger scale projects with the participation of all of its business units.

SM Prime is spending $9.2 billion to expand its businesses that will double earnings within the next five years. Its profit jumped 11 per cent to $105 million in the first quarter year-on-year on the strength of its shopping mall business.

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Reading Time: 2 minutes

The issue manager of SM Prime’s maiden bond sale expects brisk demand for the Henry Sy-led property firm’s offering. First Metro Investment Corp (FMIC) Roberto Juanchito said that the roadshow for the $575 million debt offering of SM Prime Holdings Inc at the SMX Convention Center in Pasay City was “very well attended.”

Reading Time: 2 minutes

SM CenterThe issue manager of SM Prime’s maiden bond sale expects brisk demand for the Henry Sy-led property firm’s offering. First Metro Investment Corp (FMIC) Roberto Juanchito said that the roadshow for the $575 million debt offering of SM Prime Holdings Inc at the SMX Convention Center in Pasay City was “very well attended.”

SM Prime is selling fixed-rate retail bonds with terms of five and a half years, seven years and 10 years. When asked if SM Prime may raise the full $575 billion, Dispo said: “All the big underwriters are supporting so there’s a high chance that the desired amount can be mobilized and raised from the market.”

FMIC is the sole issue manager. It will be joined by joint lead underwriters BDO Capital and Investments Corp, China Bank and BPI Capital Corp.

Investors are seen picking up SM Prime’s debt papers since this will mark the company’s maiden bond offering, Dispo said.

“SM Prime’s business model is very solid. They are into residential, retail, tourism and leisure and resorts. Essentially, the Philippine economic growth story is weaved into their business model,” he said.

Proceeds of the debt issuance will bankroll capital expenditures for its malls, offices and hotel operations. The real estate firm set a capex budget of $1.6 billion this year.

After the debt sale, SM Prime is looking at a syndicated loan of up to $300 million later this year to bankroll land banking initiatives and the development of its malls in China.

SM Prime is the holding firm for the mall, residential, office and leisure businesses of the Sy family following a corporate restructuring exercise approved by the Securities and Exchange Commission in October last year. With the consolidation of the Sy family’s real estate assets, SM Prime is now in a position to undertake larger scale projects with the participation of all of its business units.

SM Prime is spending $9.2 billion to expand its businesses that will double earnings within the next five years. Its profit jumped 11 per cent to $105 million in the first quarter year-on-year on the strength of its shopping mall business.

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