September 20, 2019 at 08:20 pm
Jenniffer B. Austria
The Securities and Exchange Commission approved the P10-billion bond offering of conglomerate San Miguel Corp.
San Miguel said in a disclosure to the stock exchange Friday the P10-billion, five-year fixed bond offering represented the third and last tranche under the conglomerate’s P60-billion bond shelf registration program earlier approved by the SEC.
The bonds to be issued on Oct. 4 will be comprised of 5-year Series H Bonds due 2024 with a fixed interest rate equivalent to 5.5500 percent percent a year.
The offering period will start on Sept. 23 and end on Sept 27. The bonds will be listed in Philippine Dealing & Exchange Corp.
San Miguel will use the net proceeds from the bond offering to fund the redemption of outstanding Series 2-B preferred shares worth P6.78 billion and refinancing of short-term peso loans worth P3.09 billion.
San Miguel tapped BDO Capital & Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp. and RCBC Capital Corp. as joint lead underwriters of the offering.
Sn Miguel in June availed of P16 billion in fixed-rate seven-year term loan for general corporate purposes.
San Miguel is one of the largest and most diversified conglomerates in the Philippines by revenues and total assets, with sales equivalent to approximately 5.9 percent of the Philippine gross domestic product in 2018.
Originally founded in 1890 as a single brewery in the Philippines, San Miguel today owns market-leading businesses, and has investments in several sectors, including beverages, food, packaging, energy, fuel and oil, infrastructure, property, car distributorship and banking services.
The company reported ₱13.23 billion in net income attributable to the parent company in the first half of the year, up 3.5 percent from P12.78 billion year-on-year.
Consolidated sales revenue in the first semester of 2019 amounted to P509.49 billion, up 2 percent from a year ago, mainly driven by the strong performance of the energy and food and beverage businesses.
First-half capital expenditures amounted to P27.96 billion.