Conglomerate San Miguel Corp. has set the interest rates for the planned issuance of up to P30 billion worth bond offering.
San Miguel said in a disclosure to the stock exchange the bond offering will be comprised of 5-year Series E Bonds due 2023 with a fixed interest rate equivalent to 6.2500 percent a year, 7-year Series F Bonds due 2025 at 6.6250 percent and 10-year Series G Bonds due 2028 at 7.1250 percent.
The bond issue represents the third tranche of the company’s P60-billion bond shelf registration earlier approved by the Securities and Exchange Commission. The offering period is scheduled March 5 to 9, while the bonds will be issued and listed in Philippine Dealing & Exchange Corp. on March 19.
The conglomerate hired seven financial institutions, namely BDO Capital and Investments Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investments Corp., ING Bank, SB Capital Investments Corp. and Standard Chartered Bank as joint lead underwriters and book runners for the offering.
San Miguel said it would use proceeds from the fund raising activity to refinance existing US dollar denominated obligations or invest in existing businesses, including SMC Global Power Holdings Corp., San Miguel Holdings Corp. and San Miguel Properties Inc.
San Miguel is one of the largest conglomerates in the Philippines in terms of revenues and total assets, with sales equivalent to about 4.7 percent of the Philippine gross domestic product in 2016.
The conglomerate 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.
San Miguel registered a net income of P20.89 billion and consolidated revenues of P597 billion in the first nine months of 2017.
San Miguel will be the second listed company to conduct a bond offering this year.
SM Prime Holdings Inc. last week successfully raised P20 billion from the issuance of fixed rate bonds.