SMB lists P17-billion fixed rate bonds on PDEx

MANILA, Philippines - San Miguel Brewery Inc. (SMB) listed last April 2 the seven-year and 10-year tranches of its new fixed rate bond issuance, bringing the outstanding tradable corporate debt on PDEx over the P200 billion mark. The listing of the P10 billion SMB Series E Bonds due 2019 (Series E Bonds) and P7 billion Series F Bonds due 2022 (Series F Bonds), simultaneous with the issuance date, is the first corporate bond listing for the year.

The company’s new bond issuance is rated PRS Aaa by the Philippine Ratings Services Corporation. The Series E Bonds and Series F bonds fetched a coupon rate of 5.93 percent per annum and 6.60 percent per annum, respectively.

SMB made its debut in the corporate debt market in 2009, with its landmark issuance and listing of its P38.8 billion fixed rate bonds in three, five and 10 year tranches. Since that initial listing in November 2009, SMB has been the leading listed private debt issuer in terms of trading volume, with aggregate volumes of the three tranches hitting over P6.3 billion, or 11 percent share of total corporate securities traded volume. 

  PDEx chairman and CEO Vicente B. Castillo said in his welcome remarks, “It is our great honor to have one of the country’s leading beverage producers as a member of the PDEx issuer community. San Miguel Brewery has dominated the Philippine alcoholic beverage market for over 120 years, capturing the tastes and preferences of Filipino beer drinkers across all segments and markets in the Philippines.” 

As of Dec. 31, 2011, SMB’s total volume sales hit P71.9 billion, a six percent improvement from year-ago levels, net income rose 17 percent to P12.1 billion, and total equity improved 12 percent to P27.9 billion. The company has also expanded its presence in the region, with operations in Indonesia, Vietnam, Thailand, Hong Kong, and China.

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