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San Miguel board gives nod to sale of fixed-rate bonds

The board of conglomerate San Miguel Corp. (SMC) has approved the company’s offering of up to P80 billion in fixed-rate bonds.

In its disclosure, the company said its offer consists of P60 billion with an oversubscription option of P20 billion.

In March, the conglomerate listed on the Philippine Dealing and Exchange Corp. a total of P30 billion in 5-year Series J bonds due 2027 and 7-year Series K bonds due 2029.

Proceeds were used for the refinancing of short-term loan facilities of the company and for other general corporate purposes.

San Miguel Corp. earlier said its income for the first half slid 33 percent to P19.8 billion from last year’s P29.57 billion, partly as a result of the effects of foreign exchange losses and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

Recurring income, which excludes foreign exchange loss and the CREATE law rose 24 percent to P32.48 billion from last year’s P26.09 billion.

Consolidated sales revenue rose 73 percent to P711.4 billion from the previous P410.12 billion on sustained volume growth and better selling prices.

The company’s operating income grew 41 percent to P85.85 billion from last year’s P61.01 billion mainly due to the improved performance of its fuel and oil subsidiary Petron Corp. and sustained recoveries of its food, beverage, packaging and infrastructure businesses.  “Overall, it’s been a very challenging period, with geopolitical conflict resulting in uncertainties and serious supply and costs issues that are affecting industries all over the world. Despite this, and even with the lingering effects of the pandemic, we’re encouraged by the strong and increasing demand for our products and services, as evidenced by our higher volumes and revenues in the first half,” San Miguel President and CEO Ramon S. Ang said.

“This shows that our country’s economic recovery and growth are gaining pace. We will maximize every opportunity to further strengthen our performance in the second half.”

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