SM Prime readies P10B bond offering
SM Prime Holdings Inc. plans to raise P10 billion from a bond offering to fund the continued expansion of its mall, residential and office portfolio.
The bonds represent the final tranche of SM Prime’s thee-year debt security program of up to P60 billion.
Local credit watcher Philippine Rating Services Corp. assigned the highest issue rating of PRS Aaa to SM Prime’s planned bond offering with a stable outlook.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk while a stable outlook indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
The rating reflects SM Prime’s strong financial profile, strong operational track record and well diversified portfolio.
“Over the projected period, profitability will remain stable. The increase in revenues will continue to be driven by rental income, coupled with strong real estate sales,” Philratings said.
Philratings said “rental fees would continue to account for bulk of revenues, while revenue contribution from real estate sales will increase as project completions during the period translate to higher unit sale.”