Diversified conglomerate San Miguel Corp. set the rates for its P20-billion bond sale.
The fixed-rate bonds are composed of Series O due 2031 and Series P due 2034. Interest rates for Series O were set at 7.2584 percent per annum and Series P at 7.719 percent.
The bond offering, approved by the Securities and Exchange Commission last week, would have a base offer of P15 billion and an oversubscription option for another P5 billion.
The bonds will be issued as the second and final tranche of the company’s P50-billion bond shelf registration program approved by the SEC in June 2021.
Offer period will run from June 18 until June 24, 2024.
The bonds will be issued and listed in the Philippine Dealing & Exchange Corp. on July 3, 2024.
SMC engaged nine banks as joint lead underwriters and bookrunners to handle the deal including Asia United bank Corp., BPI Capital Corp., PNB Capital and Investments Corp., Bank of Commerce, China Bank Capital Corp., RCBC Capital Corp., BDO Capital & Investments Corp. and SB Capital Investment Corp.
SMC will use the proceeds from the debt raising activity to invest in Ninoy Aquino International Airport (NAIA), other airport related projects in Bulacan and redemption of bonds.
Under the plan, SMC will use P11.24 billion from the net proceeds to redeem Series I bonds and another P2.44 billion for the repayment of Series F bonds maturing in March 2025.
It also allotted P6.07 billion from the net proceeds to invest in airport and airport-related projects.
SMC is set to take over the country’s main gateway this Sept. 18 after winning the bidding for the P170-billion rehabilitation, expansion and operation of NAIA in February.
SMC is aiming to grow its revenues and operating income by double-digit for 2024 on the back of continued expansion of core businesses.
The group’s food unit is building several mega poultry farms across the country, while its Ilijan liquefied natural gas business will resume operations after an upgrade and rehabilitation.
It is also set to complete the 1,000-megawatt battery energy storage system project.
SMC’s beer, infrastructure and cement businesses are also expected to meet their target revenues for the year.
