Conglomerate San Miguel Corp. plans to sell P30 billion worth of fixed-rate bonds in March.
The company said during an investors’ briefing the bond offering would be held on March 2 to March 8. The bonds will be listed with Philippine Dealing and Exchange Corp. on March 15.
Under the plan, San Miguel will issue P20 billion of fixed-rate bonds with an oversubscription option for another P10 billion.
The bonds, which represent the third tranche of the company’s P60-billion bond shelf registration approved by the SEC, are comprised of 5-year Series E Bonds due 2023, 7-year Series F Bonds due 2025 and 10-year Series G Bonds due 2028.
The conglomerate tapped seven banks, including BDO Capital and Investments Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investments Corp., ING Bank, SB Capital Investment Corp. and Standard Chartered Bank as the joint underwriters and book runners for the offering.
San Miguel said proceeds from the fund raising activity would be used to refinance existing US dollar denominated obligations or to invest in existing businesses, including SMC Global Power Holdings Corp., San Miguel Holdings Corp. and San Miguel Properties Inc.
Philippine Rating Services Corp. earlier 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 a minimal credit risk. PRS Aaa is the highest rating assigned by PhilRatings. A stable outlook indicates that the rating will likely be maintained in the next 12 months.
PhilRatings said that in assigning the rating, it considered the conglomerate’s operating businesses which provide sustainable income streams and cash flow, strong market position, solid track record and continuous efforts to manage its debt position.
San Miguel and its subsidiaries have been refinancing their dollar-denominated debts as the peso continues to weaken against the US dollar and as interest rates increase.
SMC Global Power raised P25 billion from the issuance of fixed-rate bonds in December.