Conglomerate San Miguel Corp. plans to issue P10 billion of two-year corporate notes at a yearly interest rate of 5.25 percent.
San Miguel said in a disclosure to the stock exchange it would offer the corporate notes to qualified buyers.
“The offering of the two-year, fixed-rate notes is pursuant to the authority of the board of directors of the company to issue peso-denominated fixed-rate corporate notes up to P20 billion,” San Miguel said.
San Miguel will issue the two-year notes and list them with Philippine Dealing & Exchange Corp. on May 25.
BDO Capital Investments Corp. and BPI Capital Corp. are the joint underwriters and issue managers of the transaction, while Development Bank of the Philippines, RCBC Capital Corp., and SB Capital Corp. are the co-lead managers.
San Miguel said it would use proceeds from the fund raising to refinance loan and US dollar denominated obligations and invest in subsidiaries.
The conglomerate has been refinancing dollar-denominated loans due to rising interest rates and the depreciation of the peso against the dollar.
San Miguel April also raised P20 billion from the issuance of fixed rate bonds due 2023, 2025 and 2028.
The bond sale represents the third tranche of the company’s P60-billion shelf registration approved by the Securities and Exchange Commission.
San Miguel earlier said net income in the first quarter of 2018 increased 13 percent to P15.6 billion from P13.82 billion year-on-year, boosted by the strong performance of its liquor business.
Recurring net income, which excluded one-off items, rose 31 percent to P19.36 billion from P14.83 billion a year ago.
First-quarter net sales climbed 20 percent to P234.3 billion from last year’s P195.7 billion, while income from operations increased 19 percent to P32.68 billion.
San Miguel is broadly exposed to the Philippine economy through its diverse range of businesses spanning the beverage, food, packaging, fuel and oil, energy, infrastructure, property and investment in banking.