By Jenniffer B. Austria | Jun. 09,
2014 at 12:01am [ manilastandardtoday.com ]
SM Prime Holdings Inc. disclosed over
the weekend a plan to sell P25 billion worth of retail bonds next month.
SM Prime vice president for finance
Ma. Teresa Cecilia Reyes said in a text message the offering period for the
maiden peso retail bond sale would be from July 16 to 25.
The company hired four underwriters,
including BDO Capital and Investments Corp., First Metro Investments Corp.,
China Banking Corp. and BPI Capital Corp. to arrange the deal.
First Metro president Roberto
Juanchito Dispo said investors were very excited at investing in SM Prime’s
maiden peso retail bond offering.
“Considering this maiden bond issue of
SM Prime, investors are being accorded the opportunity to invest into the
company, which has very strong fundamentals,” Dispo said.
Dispo said SM Prime recently conducted
a road show, which was attended mostly by institutional investors. SM Prime is offering P15 billion in bonds
with P10 billion overallotment in case of oversubscription.
The bonds will be offered with tenors
of five years and six months, seven and/or 10 years.
The proceeds of the bonds will be used
to finance capital expenditures for the expansion of SM malls, offices and
hotel operations.
SM Prime’s consolidated net income
increase 11 percent to P4.58 billion in the first quarter from P4.11 billion a
year ago, as consolidated revenues rose 3 percent to P15.35 billion from P14.95
billion.
Rental revenues, which accounted for
56 percent of the consolidated revenues, grew 12 percent to P8.56 billion in
the first quarter from P7.63 billion in the same period in 2013.
Real estate sales recorded a
17-percent decline to P5.02 billion from P6.01 billion. Amusement and other revenues increased 30 percent
to P710 million in 2014 from P546 million due to the opening of new amusement
rides at the Sky Ranch in Tagaytay in March 2013 and reopening of ice skating
rink at SM Megamall in January 2014.
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