SM Prime Holdings, Inc. taps the PDEx organized secondary market for the first timePosted on: September 3, 2014
01 September 2014, Makati Philippines – The Philippine local debt market welcomed the ‘ber’ months with the listing of one of the largest integrated property developers in Southeast Asia, SM Prime Holdings, Inc (SMPH).
The PhP20 billion series of SMPH bonds due in 2020, 2021 and 2024 comprise SM Prime’s maiden offering of peso-denominated retail bonds. This twelfth listing for the year pushes the record of yearly total volume of new listings to PhP 146.80 billion, 76% higher than the total listings for the whole of 2013.
With SM Prime’s bond issuance, the total listed amount of the SM Group on Philippine Dealing & Exchange Corp. (PDEx) amounted to PHP 48.33 Billion, representing 11% of the total corporate fixed-income issues in the organized secondary market. The SMPH bonds have received the PRS Aaa Rating and were highlighted by the positive response from both institutional and retail investors in the market, leading SMPH to increase the size by PhP 5 Billion over the original float of PhP 15 Billion.
SM Prime Executive Vice President Jeffrey C. Lim said in his message on behalf of the Issuer: “Today is a milestone for SM Prime as we gather here to launch and attend the listing ceremony of our maiden successful retail bond offering. We raised PhP 20 billion in ten days despite the challenging environment brought about by expectations of rising interest rates and the regulatory requirements.”
“The capital market has a big influence in helping corporations achieve their business objectives. With the funds raised, SM Prime will be able to pursue its commitment to its stakeholders by doubling its net income in the next five years and provide sustainable growth to shareholders. We are also encouraged by the confidence and support of the investing community. In the future, should the need arise for us to continue to work on several programs, we will definitely come back to the market and tap the fixed income market,” added Mr. Lim.
For his part, PDEx President and COO Antonino A Nakpil remarked: “We at the PDS Group, strive to support the business development of all of our Issuers, now including SM Prime Holdings, by further developing the infrastructure of the capital market for different types of instruments, and providing our Issuers more opportunities for funding through the organized market.”
The event was held at the PDS Group Assembly Hall and was graced by the directors and officers of SM Prime led by its President Hans T. Sy.
Representatives from the issue’s underwriters were also in attendance, including BDO Capital & Investment Corporation President Eduardo V. Francisco, First Metro Investment Corporation President Roberto Juanchito T. Dispo, BPI Capital Corporation Senior Managing Director Dennis M. Montecillo, China Banking Corporation First Vice President Virgilio O. Chua, Land Bank of the Philippines Executive Vice President, Treasury & Investment Banking Group Rabboni Francis B. Arjonillo, and Philippine Commercial Capital, Inc. Vice President Gonzalo A. Bongolan. #