SM Prime to Raise Up to ₱20 Billion in Bonds to Fuel Expansion Plans

SM Prime Holdings Inc., the nation’s foremost mall operator and the real estate arm of the Sy family, announced plans to raise up to ₱20 billion via a retail bond issuance in the fourth quarter. This move is intended to refinance existing debt and finance the company’s ambitious expansion agenda.

During a recent press briefing, Chief Financial Officer John Nam Peng Ong detailed that the bond sale, which is projected to range between ₱15 billion and ₱20 billion, will provide the company with enhanced financial flexibility while managing its liabilities.

This capital-raising effort comes as SM Prime steps up its expansion efforts to uphold its leadership in the highly competitive real estate market, facing strong rivals such as Ayala Land Inc. and Robinsons Land Corp., which are also advancing their commercial, residential, and hospitality developments.

SM Prime currently operates 88 shopping malls nationwide and boasts a diversified asset portfolio including hotels, office buildings, and convention centers. The company has outlined plans to open 10 to 15 additional shopping centers in strategic locations over the next five years, further cementing its retail market dominance.

Moreover, SM Prime is advancing five major integrated property projects, notably a 360-hectare reclamation initiative along Manila Bay. This multi-billion peso development is set to transform Metro Manila's urban landscape significantly.

Despite global economic uncertainties and inflation challenges, SM Prime remains optimistic about the sustained demand for real estate assets across its diverse sectors. The company cites ongoing urbanization, a robust local economy, and increasing consumer activity as drivers of growth for its malls, offices, and mixed-use complexes.

"We continue to believe in the long-term prospects of the Philippine property market," said Ong, emphasizing the company’s confidence in its strategic investments despite challenging external conditions.