SMC launches P30-billion bond sale

DIVERSIFIED conglomerate San Miguel Corp. (SMC) announced on Monday the start of the offer period for up to P30 billion worth of fixed rate bonds, raising fresh funds to either refinance debt or invest in its existing businesses.

SMC, in a disclosure to the Philippine Stocks Exchange said, the Securities and Exchange Commission issued on March 2 a permit to offer for sale some P20-billion fixed-rate bonds , with an oversubscription option of up to P10 billion.

The bonds, which represent the third tranche of the conglomerate’s P60-billion shelf registration, include five-year Series E Bonds due 2023, seven-year Series F Bonds due 2025, and 10-year Series G Bonds due 2028. These carry fixed interest rates equivalent to 6.2500 percent, 6.6250 percent and 7.1250 percent per annum, respectively.

The offer period would run until March 9 this year. The bonds will be listed in the Philippine Dealing and Exchange Corp. on the issue date on March 19.


SMC said the entire proceeds of the offer will be used either for refinancing the existing loan and/or redenomination of US dollar-denominated obligations, or investments in its existing businesses, such as SMC Global Power Holdings Corp., San Miguel Holdings Corp. and San Miguel Properties Inc.

“The decision to use the net proceeds for either purpose is subject to the sound business judgment of management taking into consideration, among others, favorable market conditions; the demands of the business and operations of the company; the capital requirements of its relevant subsidiary, including funding requirements of its projects; and opportunities and developments in the relevant industries of the businesses,” it said.

SMC is engaged in various industries, such as beverages, food, packaging, properties, fuel and oil, energy and infrastructure.

Meanwhile, BDO Capital and  Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., ING Bank, SB Capital Investment Corp. and Standard Chartered Bank serve as joint lead underwriters and bookrunners for the offering.

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