Ayala, San Miguel units seek P25-billion bond sales
MANILA, Philippines — Two units of Ayala Corp. and San Miguel Corp. announced separately Monday they would raise nearly P25 billion in fresh funding to support their business and pay up old debts.
In separate disclosures to the stock exchange, Ayala Land Inc. (ALI) said its board green-lighted last week a plan to raise up to P10 billion through retail bonds, while Ramon Ang-led San Miguel Food and Beverage Inc. announced the company secured regulatory approval for a P14.8-billion bond float that would be offered beginning Monday.
ALI said proceeds from its debt sale will be used to “partially” finance the company’s general requirements and to service maturing loans. The bonds will be listed at the Philippine Dealing and Exchange Corp. (PDEx).
No other details were disclosed.
Meanwhile, SMFB said the peso-denominated fixed-rate debt notes, which will mature in five or seven years, will be offered starting Feb. 24 until March 2.
The five-year Series A bonds carry an interest rate of 5.05% per annum while the seven-year Series B bonds have a fixed interest rate of 5.25% per annum. They will be listed on the PDEx and traded in denominations of P10,000.
SMFB is expected to raise P14.81 billion from the offer, which it will use to redeem 15 million worth in outstanding Series 2 perpetual preferred shares priced at P1,000 per share.
From January to September 2019, the latest period on which data is available, SMFB’s consolidated net income ended flat at P22.92 billion despite a 10-percent growth in revenues, financial statements showed.
Meanwhile, ALI posted a net income of P33.2 billion in 2019, up 13% year-on-year.
ALI is looking to earmark over P100 billion for capital expenditures this year, up to a fifth of which will be financed through local debt.
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