Shopping mall operator SM Prime Holdings Inc. on Monday listed its P10-billion retail bonds on the Philippine Dealing and Exchange Corp. (PDEx).
SM Prime’s peso-denominated Series O is set at a yield of 5.0994 percent due in 2028.
The issuance is part of the company’s P100-billion shelf registration of fixed-rate bonds approved by the Securities and Exchange Commission in February 2020.
SM Prime first issued its bonds within its shelf registration in March last year for a total of P15 billion in 5-year and 7-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. BDO Capital and Investment Corp. and China Bank Capital Corp. were the deal’s joint issue managers, and BPI Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Investment Corp. and SB Capital Investment Corp. were its joint lead underwriters.
SM Prime earlier said it will expand its energy source portfolio, favoring clean energy, on top of installing solar panel on the roofs of its facilities, across all of its business segments over the medium term.
The company said it will increase the share of renewable energy in its electricity consumption by more than half across all of its business segments by end of next year. This is in support of the Department of Energy’s program of moving up the renewable energy supply component of the country to 35 percent by 2030.
On top of diversifying energy suppliers, SM Prime will also expand the use of solar roof decks in its various properties to partly meet the electricity requirements of its business operations.
“Sustainability has always been a part of SM’s strategy and we are continuously exploring ways to promote environmental consciousness in our operations and developments. We are now embarking on a program to utilize more of renewable energy in our business operations to minimize environmental impact,” SM Prime president Jeffrey C. Lim said.
SM Prime reported last week that its income in January to September rose 9 percent to P15.6 billion from last year’s P14.4 billion, mainly as a result of strong sales posted by its residential business.
Revenues fell 6 percent to P56.8 billion from last year’s P60.7 billion, as its shopping mall business remained weak.
SM Prime’s residential business, led by its condominium builder SM Development Corp. (SMDC), still accounts for more than half of SM Prime’s revenues at 56 percent. Consolidated revenues, however, were 6 percent lower to P32.1 billion, from last year’s P34.2 billion.
SMDC’s reservation sales reached P76.3 billion for the three quarters of the year, some 14 percent higher than the P66.7 billion it recorded last year. The strengthened online presence and continuous construction of SMDC projects boost its sales take up for the period, the company said.
SM Prime’s Philippine mall business, which now accounts for only 28 percent of the company’s consolidated revenues, recorded P15.8 billion in revenue for the period, 14 percent lower from last year’s P18.3 billion.