SM Prime Holdings Inc., the Philippines' largest integrated property developer, has filed a request with regulators to raise up to P12 billion through a new offering of fixed-rate retail bonds, with an option to increase the total to P18 billion via an oversubscription option.
In a regulatory filing on Thursday, the Sy-led conglomerate said the bonds will be issued in two series: five-year and nine-month Series AE Bonds due in 2032, and 10-year Series AF Bonds due in 2036. The offering represents the fourth tranche under the company's P100-billion shelf registration program approved by the Securities and Exchange Commission in 2024.
Proceeds from the bond sale will provide funding flexibility for SM Prime's expansion projects and operational needs. The company has been a regular issuer in the local bond market, leveraging its strong balance sheet to support capital expenditures.
Retail bonds allow companies to secure long-term financing while offering investors fixed-income returns. SM Prime has not yet disclosed coupon rates or the offer period, which will be finalized after regulatory approval and book-building.
SM Prime's portfolio includes malls, residential developments, offices, hotels, and convention centers. The company recently reported a first-quarter net income of P11.66 billion, nearly flat from P11.65 billion a year earlier, as higher costs offset modest revenue growth. The firm is also preparing to open SM Nuvali, a flagship mall in Sta. Rosa, Laguna, by end-2026, the first of five planned flagship malls from 2026 to 2030.