San Miguel Corp. has raised P10 billion from the successful listing of its 2022 bonds, the second tranche of an offering under the P60-billion shelf registration earlier approved by the Securities and Exchange Commission.
San Miguel senior vice president and treasury head Sergio Edeza said the company would issue the balance amounting to P30 billion “sometime in the future.”
The company plans to use the proceeds from the bond offering to settle the conglomerate’s $300-million loan with the Bank of Tokyo-Mitsubishi UFJ Ltd. maturing in November.
“Proceeds of the bond offering will be used mainly to refinance our US dollar denominated debt,” Edeza said.
The bonds were listed at Philippine Dealing and Exchange Corp. on Friday. The five-year bonds carry an interest rate of 5.1923 percent annually.
San Miguel tapped BDO Capital & Investment Corp., BPI Capital Corp., ING Bank, RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank to handle the issue.
San Miguel earlier raised P20 billion to finance dollar-denominated debts.
The company raised P6.9 billion from the series 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 an interest rate of 5.2840 percent per annum and P6 billion for the 10-year Series C Bonds due 2027 with an annual fixed interest rate of 5.7613 percent.
San Miguel in 2016 posted a net income of P52 billion, up 80 percent from P28.9 billion in 2015, as most of its units delivered strong growth.
Excluding foreign exchange losses of P8.9 billion, consolidated income reached P61.2 billion.
Net sales in 2016 rose two percent to P685.3 billion from P672.2 billion a year ago, while income from operations increased 24 percent to P99.6 billion.