San Miguel selling P30 B retail bonds

MANILA, Philippines — Diversified conglomerate San Miguel Corp. will launch a new offering of retail bonds worth as much as P30 billion to fund massive capital requirements and refinance debt.

The offering represents the third tranche of the company’s three-year debt securities program of up to P60 billion.

Credit watchdog Philippine Rating Services Corp. has assigned an issue rating of  PRS Aaa to SMC’s proposed bond issue.  The issue also has a Stable outlook which indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months. 

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. This means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong. 

In assigning the rating, PhilRatings considered SMC’s sustainable income streams and cash flows, the SMC group’s strong market position, solid track record, continuous efforts to manage its debt position and  experienced management team.

 Originally founded in 1890 as a single brewery in the Philippines, SMC has transformed itself from a market-leading beverage, food and packaging business with a globally recognized beer brand, into a diversified conglomerate with market-leading businesses in the fuel and oil, energy, infrastructure, and additionally, an investment in banking.

SMC, through its subsidiaries and affiliates, has become a Philippine market leader in its businesses with 23,858 regular employees and more than 100 production facilities in the Asia-Pacific region, as of Sept. 30, 2017.

The extensive portfolio of SMC products includes beer, liquor, non-alcoholic beverages, poultry, animal feeds, flour, fresh and processed meats, dairy products, coffee, various packaging products and a full range of refined petroleum products.  Most of these products are market leaders in their respective markets 

Through the partnerships it has forged with major international companies, the SMC Group has gained access to the latest technologies and expertise, thereby enhancing its status as an organization operating under global standards.

 SMC has strategic partnerships with international companies, among which are Kirin Holdings Co., Ltd.  for beer, Hormel Foods International Corp. for processed meats, Nihon Yamamura Glass Co., Fuso Machine & Mold Mfg. and Can-Pack S.A. for packaging products, and Korea Water Resources for SMC Global Power Holdings Corp.  

SMC’s financial performance for the nine months ending September 2017 remained solid, with majority of its businesses sustaining healthy growth. The company posted a net income of P20.9 billion as revenues grew 20 percent to P597 billion, driven by strong sales of Petron, the infrastructure business, as well as the combined revenues of the core beverage, food and packaging businesses, which rose 11 percent.