SM Prime board OKs P25-B retail bond sale

Posted at 05/05/2014 2:19 PM | Updated as of 05/05/2014 6:15 PM

MANILA, Philippines - Henry Sy's SM Prime Holdings, Inc. (SMPH) is set to issue fixed rate peso retail bonds of up to P25 billion.

In a disclosure to the stock exchange, SM Prime said its board of directors approved the issuance of the bonds, which will be offered with tenors of 5 years and 6 months, 7 and/or 10 years.

"The proceeds of the bonds will be used to finance capital expenditures for the expansion of the company’s malls, offices and hotel operations," the company said.

The board of directors has also authorized the management to negotiate and finalize the terms and conditions of the retail bond issue.

Earlier, SM Prime chief finance officer Jeffrey Lim said the company is set to raise total of P33.5 billion from the debt market both here and abroad during the first half of the year.

Last month, SM Prime unveiled an aggressive 5-year plan that involves some P400 billion in capital expenditures up to 2018 to boost its mall and residential property business.