Do you want to Make Money and Grow Money?

YES, I want it!


By: Marvin Germo | March 27, 2020

P15 Billion Worth of Bonds

SM Prime Holdings, Inc. issued fixed-rate bonds worth P15 billion. This is a part of its shelf registration of P100-billion securities. According to the company, the first portion of its debt securities program is already completed, which was worth P15 billion as well. Now, it’s looking forward to adding another tranche. The new offering is composed of five-year bonds with a 4.8643% interest rate per annum and seven-year bonds with a 5.0583% interest rate per annum. If you have been satisfied with the previous offering of SM Prime, this is another opportunity for you to invest in its bonds.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
Stock Smarts Singapore: May 16 – 17, 2020
Stock Smarts New Zealand: June 6 – 7, 2020
Stock Smarts Sydney: July 11 – 12, 2020
Stock Smarts London: April 18 – 19, 2020

The Purpose of the Bonds

SM Prime disclosed that the proceeds of the bonds will be used to finance its capital expenditures, which will be allocated for the expansion of its mall operation. The offering is expected to bring in P14.76 billion. This net proceeds will be divided to finance different mall expansion projects that will start this year. Also, 17 new malls are lined up to be launched from 2020 to 2021, including the expansion of SM City Baguio Mall. The purpose of the proceeds is clear and SM Prime is looking forward to expanding its operation nationwide.

One-time Redemption

The bonds include a one-time option to redeem any series as a whole before the maturity date. The redemption price of its five-year bonds is 101% on the 6th and 7th interest payment dates and 100.5% on the 8th and 9th interest payment dates. Meanwhile, its seven-year bonds have redemption prices of 101% on the 10th and 11th interest payment dates and 100.5% on the 12th and 13th interest payment dates. If you are planning to make a one-time redemption, this information will help you estimate the total proceeds you are going to make from the offer.

Banks Tapped By SM Prime

With regard to the offer, SM Prime poked different banks to help with the issuance. Included in the list are BDO Capital and Investment Corporation and China Bank Capital Corporation as the joint issue managers while BDO Capital and Investment Corporation, East West Banking Corporation, RCBC Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation, SB Capital Investment Corporation, and BPI Capital Corporation are the joint lead underwriters and joint bookrunners. In 2019, SM Prime had an increase of 18% in its earning to P38.1 billion. Its revenue also rose by 14% to P118.3 billion.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders