San Miguel Corp. (SMC) said Thursday it is issuing up to P10 billion in peso-denominated fixed-rate notes to refinance its existing US dollar obligations and for general corporate purposes.
The notes, which have a three-year tenor, will be issued in December 2025 in scripless form. The minimum denomination is P5 million each and integral multiples of P1 million thereafter. The board approved the issuance.
San Miguel said it plans to use the proceeds to refinance and redenominate US dollar obligations of the corporation, for general corporate purposes and to pay fees and expenses arising from the issuance.
The notes will be enrolled at the Philippine Dealing Exchange and are exempt from registration with the Securities and Exchange Commission (SEC) as they will be sold only to qualified institutional buyers.
Earlier this year, San Miguel reported a net income of P66.8 billion in the first six months, up 391 percent from P13.6 billion recorded in the same period last year.
This was boosted by one-time gains from a valuation uplift on its 33 percent residual investment in the Ilijan power facility and Excellent Energy Resources Inc. (EERI) facilities, as well as foreign exchange gains.
First-half revenues, however, declined 9 percent to P718.2 billion, on the deconsolidation of the Ilijan and EERI assets in the power unit and softer crude prices impacting the fuel and oil segment.
These were partly offset by stronger results from the food, spirits and infrastructure businesses. Operating income rose 3 percent to P87.7 billion, led by the food, spirits and infrastructure units.
