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Friday, March 29, 2024

San Miguel raises P20b from latest bond issue

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Conglomerate San Miguel Corp. has successfully raised P20 billion from the issuance of fixed-rate bonds, one of the underwriters handling the transaction said Wednesday.

BDO Capital and Investments Corp. president Eduardo Francisco said the demand for San Miguel fixed-rate bonds was high, enabling the conglomerate to raise the primary offer of five-, seven- and 10-year bonds.

The company did not exercise the oversubscription option of up to P10 billion.

The bond offering comprised of 5-year Series E Bonds due 2023 with a fixed interest rate equivalent to 6.2500 percent per annum, 7-year Series F Bonds due 2025 at 6.6250 percent and 10-year Series G Bonds due 2028 at an interest rate equivalent to 7.1250 percent a year.

The P20-billion bond sale represents the third tranche of the company’s P60-billion bond shelf registration earlier approved by the Securities and Exchange Commission.

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The bonds will be listed with Philippine Dealing and Exchange Corp. on March 19.

San Miguel earlier said it would use proceeds form the fund-raising activity to refinance existing US dollar denominated obligations or invest in business units, including SMC Global Power Holdings Corp., San Miguel Holdings Corp. and San Miguel Properties, Inc.

Philippine Rating Services Corp. earlier assigned an issue rating of PRS Aaa to San Miguel’s P30-billon bond offering with a stable outlook.

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. 

A stable outlook indicates the rating is likely to be maintained or to remain unchanged in the next 12 months. 

In issuing the rating, PhilRatings considered the conglomerate’s operating businesses which provide sustainable income streams and cash flows, as well as its strong market position, solid track record and efforts to manage its debt position.

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