San Miguel to raise as much as P60B from new bonds

MANILA, Philippines – San Miguel Corporation (SMC) plans to raise as much as P60 billion by issuing new bonds over a 3-year period.

SMC chief information officer Ferdinand Constantino told the Philippine Stock Exchange on Thursday, November 10, that the San Miguel board of directors authorized the shelf offering of up to P60 billion worth of bonds, with initial issuance amounting to P20 billion with or without oversubscription.

Shelf offering allows firms to raise capital without undergoing a separate registration for each act. A single registration is enough for future public offerings of the security. 

SMC told the local bourse that it will file the appropriate registration statement and prospectus on the planned bond offering with the Securities and Exchange Commission (SEC).

"For these purposes, the board has authorized the engagement of the services of underwriters, advisors, legal counsels, stock and transfer agent, receiving agent/bank and other agents as may be necessary to effect the offering," SMC said.

The diversified conglomerate will also file a listing application with Philippine Dealing and Exchange (PDEX) for the issuance of the initial tranche.

The SEC earlier approved the conglomerate's shelf offering of up to P80 billion worth of Series 2 Preferred Shares.

The new bonds will be the second shelf registration program of SMC to be filed before the SEC.

9-month income more than doubles

In a separate statement, the Ramon Ang-led conglomerate said it saw its 9-month net income jump by 125% to P42.9 billion, from the P19.08 billion posted in the same period in 2015.

SMC attributed the jump in its net income to the double-digit growth of its core businesses' operating income.

Its consolidated revenues, however, inched down by 1% to P498.3 billion in the first 9 months of the year, from P503.3 billion posted in the same period a year ago.

This was tempered by its new businesses' growth, with its power group posting an 18% surge in operating income, Petron Corporation at 23%, and its operating toll roads at 7%.

San Miguel said its income from operations surged by 24% to P73.2 billion in the first 9 months of 2016, compared to P59.01 billion in 2015.

Its beer unit, San Miguel Brewery Incorporated, booked a net income of P12.2 billion in the first 3 quarters of the year, up 22% from a year ago, as its sales climbed by 18% during the period.

Its food manufacturing unit San Miguel Pure Foods Company Incorporated also increased its net income by 29% to P3.75 billion in the first 9 months of the year, while its power subsidiary San Miguel Global Power Holdings Incorporated surged by 320% to P5.7 billion from the 2015 level. – Rappler.com