SM Prime’s P100-B securities cleared

SM Prime Holdings, Inc. has received clearance from the Securities and Exchange Commission (SEC) for its proposed shelf registration of Php100-billion debt securities.

In an official statement, the country’s corporate regulator said it has approved SM Prime’s plan to issue the fixed rate bonds, and has likewise given it permit to sell securities for the offering’s initial tranche.

The initial tranche covers the issuance of Php15-billion Series K and Series L bonds, which may be oversubscribed by up to Php5 billion. The Series K bonds have a tenor of five years and the Series L bonds have a tenor of seven years.


SM Prime is expected to net Php14.79 billion from the issuance, and an additional P4.94 billion if the oversubscription option is utilized. This will be used to finance the company’s capital expenditures for mall expansion projects until 2022.

The SEC said the Php80-billion remainder from SM Prime’s shelf registration may be offered within three years from its approval of the registration statement.

SM Prime earlier said it plans to start offering the first tranche in February, where the bonds will be offered in minimum denominations of Php20,000 and in multiples of Php10,000 thereafter.