SM Prime Holdings, Inc. (SMPH) has announced initial interest rates for its fixed-rate retail bond series AB, AC and AD, which aims to raise up to P17 billion.
In a regulatory filing on Wednesday, the listed property developer said the bonds will have interest rates of 5.9096% for series AB maturing in 2030, 6.0858% for series AC due in 2032 and 6.2855% for series AD due in 2035.
The offering, which consists of P12 billion in fixed-rate bonds with an oversubscription option of up to P5 billion, represents the third tranche of SM Prime's P100-billion debt securitization program approved by the Securities and Exchange Commission (SEC) in June last year.
In September, SM Prime said the proceeds from the issue would be used to finance 16 major redevelopment projects and 12 new lifestyle malls scheduled by 2030, as well as the launch of new malls in Xiamen and Fujian, China.
Philippine Rating Services Corp. (PhilRatings) has assigned the bond its highest rating of PRS AAA with a “stable” outlook, indicating an “extremely strong” ability to meet financial obligations.
The offering follows SM Prime's maiden issuance of US$350 million of US dollar-denominated senior notes.
SM Office
In a separate disclosure, SM Prime said its office arm SM Offices has increased its use of renewable energy, sourcing more than half of its electricity from certified renewable sources to reduce operating costs and align with sustainability-focused tenants.
By mid-2025, the company expects to install solar photovoltaic systems in 48 malls and office buildings with a total capacity of 73 megawatt-peak (MWP).
SM said it is incorporating solar grids, sensor-enabled fixtures and energy-efficient cooling systems into its properties to manage energy costs, increase reliability and support tenant sustainability goals.
SM Office Vice President and Head Alexis L. “The SM Office not only supports, but also goes beyond, the Philippine government’s goal of having 50 percent of the country’s electricity generation come from renewable sources by 2040,” Ortiga said.
The Department of Energy's National Renewable Energy Program (NREP) 2020-2040 seeks to increase the share of renewable energy in the country's power generation mix to 35% by 2030 and 50% by 2040.
Several of SM Prime's flagship buildings – including Three E-Com and Four E-Com at the Mall of Asia complex, Aura Tower near SM Aura Prime, Mega Tower in Ortigas and North Towers in Quezon City – have achieved LEED Gold certification from the US Green Building Council.
The company said its one e-com, two e-com and five e-com buildings are currently pursuing LEED O+M certification, which recognizes sustainable operations and maintenance practices that improve energy and water efficiency, indoor air quality and occupant well-being.
“SM offices remain resilient by integrating sustainability initiatives into our core strategies. Our offices are located close to where people live, helping to reduce travel times and emissions, and we are expanding renewable energy use and EV charging infrastructure to support a low-carbon economy,” Mr. Ortiga said.
In the local market on Wednesday, SM Prime shares fell 0.87% or 20 centavos to close at P22.70. -Alexandria Grace C. Magno
