PRS Aaa to Initial Tranche of SM Prime Holdings Proposed Bond Issue

The Philippine Rating Services Corporation (PhilRatings) assigned a rating of PRS Aaa to SM Prime Holdings, Inc.’s (SMPH) proposed bond issue of up to P20.0 billion, with an oversubscription option of up to P5.0 billion.

The proposed issue represents the second tranche of the Company’s P100 Billion Shelf Registration of Fixed Rate Bonds approved by the SEC on 23 May 2024 under SEC MSRD Order No. 46 series of 2024, dated 6 June 2024. The rating for SMPH’s outstanding bonds amounting to P137.8 billion was likewise maintained at PRS Aaa. PhilRatings assigned a Stable outlook for the ratings of the proposed and outstanding bonds.

PRS Aaa is the highest rating assigned by PhilRatings, denoting that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.

SM Prime Holdings, Inc. was incorporated in the Philippines in 1994. They started as a mall developer and operator and grew to be the biggest retail shopping center developer and operator in the Philippines. Currently, it has 85 malls in the Philippines and 8 shopping malls in China, totaling 10.8 million square meters of Gross Floor Area (GFA). In the Philippines, they have a total of 20,615 tenants and 2,183 tenants in China.

SM Prime goes beyond mall development and management through its units and subsidiaries. SM Development Corporation (SMDC) is the residential business component that sells affordable condominium units. SM Prime’s commercial business units, the Commercial Properties Group (CPG) is engaged in the development and leasing of office buildings in Metro Manila. Its Hotels and Convention Centers business unit develops and manages various hotel and convention centers across the country.