MANILA, Philippines – Listed San Miguel Corporation is raising up to P30 billion through a peso bond offering to refinance existing obligations and invest more in its existing businesses.
In a filing with the Securities and Exchange Commission (SEC), San Miguel said it will issue P20 billion in fixed rate bonds with an oversubscription of up to P10 billion.
This represents the 3rd tranche of the conglomerate's P60-billion bond shelf registration previously approved by the SEC.
The bonds to be issued include 5-year Series E Bonds due 2023, 7-year Series F Bonds due 2025, and 10-year Series G Bonds due 2028.
San Miguel tapped 7 banks to be the joint underwriters and book runners for the offering – BDO Capital and Investments Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investments Corporation, ING Bank, SB Capital Investment Corporation, and Standard Chartered Bank.
The bonds will be listed with the Philippine Dealing and Exchange Corporation. (READ: Foreign firms eyeing piece of San Miguel's food, beverage unit)
San Miguel said proceeds will be used to refinance existing US-dollar denominated obligations or invest in existing businesses, including SMC Global Power Holdings Corporation, San Miguel Holdings Corporation, and San Miguel Properties Incorporated.
Philippine Rating Services Corporation (PhilRatings) has assigned an issue rating of PRS Aaa to San Miguel's P30-billion bond offering, with a stable outlook.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk.
A stable outlook indicates that the rating is likely to be maintained or to remain unchanged in a year.
In issuing the rating, PhilRatings considered the conglomerate's operating businesses, which it said provide sustainable income streams and cash flows, as well as its strong market position, its solid track record, and continuous efforts to manage its debt position.
San Miguel has been refinancing its dollar-denominated debts as the peso continues to weaken against the dollar and interest rates rise.
Last November, SMC Global Power raised P25 billion from the issuance of fixed rate bonds.
The share price of San Miguel on Wednesday, January 31, closed lower by 0.62% to P144 each. – Rappler.com