SMC starts P20 billion bond offer

MANILA, Philippines — Diversified conglomerate San Miguel Corp. (SMC) has secured the approval of the Securities and Exchange Commission (SEC) to proceed with its P20-billion bond offering.

SMC’s bond offer was launched yesterday and will run until June 24.

The fixed rate retail bonds consist of a P15-billion base offer and an oversubscription option of up to P5 billion.

SMC said it intends to use the entire net proceeds from the offer for the investments in its Manila International Airport and other airport-related projects, redemption of Series I Bonds as a result of the put option exercise of its bondholders as well as repayment of Series F bonds.

The offer bonds are comprised of 6.5-year Series O bonds due 2031 with a fixed initial interest rate of 7.2584 percent per annum and 10-year Series P bonds due 2034 with a fixed initial interest rate of 7.7197 percent per annum.

The bonds have been rated PRS Aaa with a stable outlook by the Philippine Rating Services Corp.

SMC plans to issue and list the bonds in the Philippine Dealing and Exchange Corp. on July 3.

Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. are the joint issue managers and together with Asia United Bank Corp., BPI Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. are the joint lead underwriters and bookrunners.

The issuance comes from the remainder of SMC’s existing P50 billion SEC shelf-registered peso-denominated bonds.

SMC in 2021 raised P30 billion from the first tranche of the SEC-approved shelf program.