SM Prime raises ₱25B through fixed-rate retail bonds with high ratings

SM Prime Holdings Inc., one of Southeast Asia's largest property developers, raised ₱25 billion from the issuance of fixed-rate retail bonds listed on PDEx on Feb. 25, 2025.

The bonds consist of Series Y, Z, and AA with maturities in 2028, 2031, and 2035 respectively, carrying interest rates of 6.0282%, 6.2113%, and 6.4784%.

Philippine Rating Services Corporation (PhilRatings) assigned the highest PRS Aaa rating to these bonds, indicating minimal credit risk and strong financial capacity for SM Prime.

SM Prime plans to allocate ₱100 billion in capital expenditures this year, focusing on malls, residences, and integrated property developments (IPDs), with a particular emphasis on regional, premium, and leisure residential projects.

The company recorded a 14% increase in consolidated net income in 2024, reaching P45.6 billion, driven by strong holiday spending, the opening of two new malls, and higher real estate sales.