SMC prices P15-b bonds

Conglomerate San Miguel Corp. set at 5.1923 percent per annum the interest rate for the planned 5-year bond offering worth P15 billion.

San Miguel said in a disclosure to the stock exchange the bond offering would be on March 21 to March 27.  The bonds will be listed with the Philippine Dealing & Exchange Corp. on April 7.

San Miguel is issuing P10 billion worth of fixed-rate bonds with an oversubscription option for another P5 billon. The bonds represent the second tranche of bond offering under the company’s P60-billion shelf registration approved by the Securities and Exchange Commission.

Proceeds from the bond offering will be used to settle the conglomerate’s $300-million loan with the Bank of Tokyo-Mitsubishi UFJ Ltd. maturing in November.

San Miguel tapped BDO Capital & Investment Corp., BPI Capital Corp., ING Bank, RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank.

San Miguel raised P20 billion in February to finance dollar-denominated debt.  It raised P6.9 billion for the 5-year Series A bonds due 2022 with an interest rate of 4.8243 percent per annum, P7.3 billion for the 7-year Series B bonds due 2024 with interest rate of 5.2840 percent interest rate per annum and P6 billion for the 10-year Series C bonds due 2027 with fixed interest rate of 5.7613 percent per annum. 

The latest bond offering was assigned an issue credit rating of PRS Aaa, with a stable outlook by Philippine Rating Services Corp. 

San  Miguel posted a net income of P52 billion in 2016, up 80 percent from P28.9 billion in 2015 as most of its units delivered strong growth.

Topics: San Miguel Corp.
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