Conglomerate San Miguel Corp. set the terms for the planned P20-billion fixed-rate bond offering in February this year.
Documents filed with the Securities and Exchange Commission showed the P15-billion bonds with P5-billion oversubscription option would consist of series A bonds due 2022, series B due 2025 and series C due 2027.
San Miguel will have an option to redeem the bonds in the third year from the issue date for series A, fifth and sixth year for series B and eighth and ninth year for series C.
Proceeds from the bond offering will be used to partially refinance loans used to redeem US dollar-denominated loans.
The company earlier borrowed a total of P20 billion from lenders BDO Unibank Inc., Bank of Philippine Islands, China Bank, Rizal Commercial Banking Corp. and Security Bank, which were used to repay US dollar-denominated loans and partially prepay existing US dollar-denominated loans.
Offer period for the bond sale was tentatively set on Feb. 20 to 24. The bonds will be listed with the Philippine Dealing & Exchange Corp.
San Miguel hired seven joint underwriters for the offering including BDO Capital& Investments Corp., BPI Capital Corp., China Bank Capital Corp., ING Bank N.V., RCBC Capital Corp., SB Capital Corp and Standard Chartered Bank
The P20 billion planned bond offering forms part of the company’s three-year shelf registration of up to P60 billion.
San Miguel is one of the largest conglomerates in the Philippines with diversified businesses ranging from beverages, food and packaging to fuel and oil, energy and infrastructure.
Net income of San Miguel jumped 125 percent in the first nine months to P42.9 billion from P19.08 billion recorded a year ago, as all core businesses posted double-digit growth in terms of operating income.
