SY-LED property developer SM Prime Holdings Inc. on Monday listed P25 billion in fixed rate retail bonds at the Philippine Dealing and Exchange Corp. (PDEx), the first tranche of a P100-billion shelf registration approved by the Securities and Exchange Commission in May.

The issue consisted of three-year Series V bonds due in 2027, five-year Series W bonds due in 2029 and seven-year Series X bonds due in 2031.

"The successful listing of the bonds was met with overwhelming demand from the investing public, resulting in a three-fold oversubscription that has allowed us to raise an impressive P25 billion," SM Prime Chief Finance Officer John Nai Peng Ong said in a statement.

"This remarkable success is a testament to the unwavering trust and confidence that our shareholders, customers, business partners and the investing community have placed in SM Prime," he added.

The bonds were rated PRS Aaa with a stable outlook by the Philippine Rating Services Corp. This indicated that they were investment instruments of the highest quality with minimal risk and the stable outlook signified that the rating was likely to be maintained over the next 12 months.

Proceeds will be used to refinance debt and expand SM Prime's property portfolio.

Alexander Pomento, SM Prime vice president for investor relations, said the fresh funds formed part of SM Prime's P100-billion capital expenditure program for 2024, which is meant to "support the various projects of the company that include malls, residential developments, hotels and offices."

SM Prime said that it intended to beef up its portfolio through SM Development Corp. with the planned launch of up to 10,000 residential units this year.

Issuance of the second tranche of the P100-billion shelf registration bonds, meanwhile, will depend on SM Prime's funding needs for its additional projects, Pomento said.

Monday's listing was led by PDEx President and Chief Executive Officer Antonio Nakpil and SM Prime's chief financial officer Ong, along with the bonds' joint issue managers.

BDO Capital & Investment and China Bank Capital served as joint issue managers, with BPI Capital, EastWest Bank, First Metro Investment, Land Bank of the Philippines and SB Capital Investment as joint underwriters and bookrunners together with BDO Capital and China Bank Capital.

SM Prime Holdings' shares on Tuesday closed up 0.56 percent at P27.15 apiece.

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