SEC Okays SM Prime Holdings, Inc.'s P100 Billion Bond Program

The Securities and Exchange Commission (SEC) has considered favorably the shelf registration of SM Prime Holdings, Inc. for up to P100 billion of fixed-rate bonds.

In its meeting on May 23, the Commission En Banc resolved to render effective the registration statement for the company’s peso-denominated bonds which can be offered in one or more tranches, subject to its compliance with certain remaining requirements.

For the first tranche, SM Prime will offer to the public up to P20 billion of three-year Series V bonds, five-year Series W bonds, and seven-year X bonds, with an oversubscription option of up to P5 billion.

Net proceeds from the offer could amount to P24.72 billion, assuming the overallotment option is fully exercised. Proceeds will be used to refinance the listed company’s debt and expand its property portfolio.

The bonds will be offered at face value from June 7 to 14, according to the latest timeline submitted to the SEC. They will subsequently be listed on the Philippine Dealing & Exchange Corp.

SM Prime tapped BDO Capital & Investment Corporation and China Bank Capital Corporation as the joint issue managers for the offer. They will join BPI Capital Corporation, East West Banking Corporation, First Metro Investment Corporation, Land Bank of the Philippines, and SB Capital Investment Corporation as joint lead underwriters and bookrunners.