Property developer SM Prime Holdings Inc. on Monday said it has filed with the Securities and Exchange Commission (SEC) an application for a permit to sell some P10 billion in fixed-rate bonds.
The company wants to sell some P5 billion as its base offer and an over-subscription option of up to P5 billion with maturity of seven years.
The issuance is the third tranche of the company’s P100-billion shelf registration of fixed rate bonds approved by the SEC in February 2020.
In March last year, SM Prime issued the first tranche amounting to P15 billion in five-year and seven-year fixed rate bonds with interest rates of 4.8643 percent and 5.0583 percent, respectively.
The second tranche was floated in February for a total of P5 billion in 2.5-year and 5-year fixed rate bonds with interest rates of 2.4565 percent and 3.8547 percent, respectively.
The shopping mall operator earlier said its net income in the first semester rose 12 percent to P11.6 billion from P10.4 billion last year due its sharp recovery in the second quarter on the back of its residential business, but revenues were still down.
For April to June, its income grew more than double to P5.16 billion from P2.11 billion last year.
First-half consolidated revenues were recorded at P41.1 billion, down 6 percent from P43.7 billion last year.
For the second quarter alone, its gross revenues fell 12 percent to P20.48 billion from last year’s P18.21 billion.
“In these challenging times, we are committed more in providing a safe environment to all our stakeholders via the strict observance of health and safety protocols across all our developments. Along with this commitment is our initiative to support the national government’s vaccination program in our malls nationwide as well as providing free inoculation to thousands of our employees,” SM Prime President Jeffrey C. Lim said.
The company said its residential business continued to improve in the first half, while its shopping malls business recorded improvements in the second quarter despite the reimplementation of tougher quarantine restrictions from March to May in Metro Manila and nearby provinces.