spot_img
28.4 C
Philippines
Friday, March 29, 2024

SMC pegs interest rate on P20-b bonds

- Advertisement -

Conglomerate San Miguel Corp. set the interest rates on a planned P20-billion fixed-rate bond offering slated this month.

San Miguel said in a disclosure to the stock exchange the five-year series A bonds due 2022 would carry an interest rate of 4.8243 percent per annum, the seven-year series B bonds due 2024 would have 5.284 percent and the 10-year series C bonds due 2027 would fetch 5.7613 percent.

San Miguel is offering P15 billion, with an oversubscription option for another P5 billion primarily to finance maturing debt.  Offer period started Feb. 14 and will end Feb. 20.

The bonds will be listed with Philippine Dealing & Exchange Corp. on March 1.

The company tapped BDO Capital & Investments Corp., BPI Capital Corp., China Bank Capital Corp., ING Bank N.V., RCBC Capital Corp., SB Capital Corp and Standard Chartered Bank as joint underwriters for the offering.

- Advertisement -

The P20-billion bond offering is a part of the company’s three-year shelf-registration of up to P60 billion.  The remaining unissued amount will be placed under shelf registration which the company may issue over the next three years.

Philippine Rating Services Corp. earlier gave the highest credit rating of PRS Aaa, with a stable outlook, on the bond offering.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. PRS Aaa is the highest rating assigned by PhilRatings.

PhilRatings said San Miguel had a manageable and improving debt position, especially considering the capital-intensive nature of its recent projects in energy and infrastructure. 

San Miguel is one of the largest conglomerates in the Philippines with diversified businesses ranging from beverages, food, packaging, fuel and oil, energy and infrastructure. 

The conglomerate plans to spend P281 billion in capital expenditures from 2017 to 2019 to expand its new and traditional businesses.

- Advertisement -

LATEST NEWS

Popular Articles