SM Butuan is slated to open in 2015 after concluded fixed retail bond sale takes place in the the country’s largest integrated property developer, SM Prime Holdings, Inc. for about P20 billion.
As of this development, Butuan will now pose as one of the tiger economy cities in the country offering high end shopping mall that accommodate demands from consumers in the region.
Here’s the complete stories from Manila Standard:
SM Prime Holdings Inc., the country’s largest integrated property developer, may raise close to P20 billion from the recently concluded fixed retail bond sale.
SM Prime chief finance and executive vice president Jeffrey Lim said in a text message the company raised P15 billion, which was the primary offer, and could exercise a portion of the P10 billion, representing the overallotment option.
“We will know the final numbers next week. We will exercise [the overallotment] but not the full amount,” Lim said.
BDO Capital and Investments Corp. president Eduardo Francisco said in a text message the final numbers were still being finalized, but the company might raise close to P20 billion.
The bonds, with tenors of 5.5 years, 7 years and 10 years, were offered to investors from Aug. 13 to 22. The retail bonds are set to be issued on Sept. 1.
SM Prime earlier set interest rates for the 5.5-year retail bonds at 5.1 percent per annum, 7-year retail bonds at 5.2006 percent and 10-year retail bonds at 5.7417 percent.
Proceeds from the offering will be used to finance capital expenditures for mall and hotel expansions, it said.
SM Prime is preparing to roll out 12 new shopping malls starting in the second half of 2014 until 2016, as mall operations are expected to continue to account for majority of the group’s net income.
SM Prime is slated to open SM Angono in the second half and four new malls, including SM City Seaside Cebu, SM Butuan, SM Cagayan de Oro 2 and SM San Mateo next year.