plans toissue up to 10 billion Philippine pesos of bonds with a 10-year term towardsthe third quarter of 2016, Manila's BusinessWorldreported April 12, citing SM Prime Executive Vice President Jeffrey Lim.
Thenotes will be the first tranche of bonds issued under a target to raise between50 billion pesos and 70 billion pesos over a three-year period. SM Primeintends to use the proceeds from the transactions to fund its expansion program.
For2016, the company has allotted 65billion pesos for capital expenses, as previously reported. In the secondhalf of 2015, the company had sought to raise around 15 billion pesos from debt issuances.
Limadded that SM Prime will seek external financing as partial funding for its 180billion-peso capital expenditure, or capex, over three years.
BusinessWorld further reported that thePhilippine developer's plan follows those from its local peers such asAyala Land Inc.,which is looking to raise 50 billion pesos by issuing .
Interms of overseas expansion, SM Prime's three-year capex includes funding forits Chinese operations. President Hans Sy was reported by the newspaper assaying that the company still aims to open a new mall in China per year, as itgears up for the launch of the SM Tianjin mall before Dec. 31. The shoppingcenter spans 540,000 square meters of gross floor area, making it SM Prime'slargest mall in China.
Inaddition, the company plans to begin sales at its in China in2016 upon receiving a government license, according to Lim.
As of April 12, US$1 wasequivalent to 46.04 Philippine pesos.