Conglomerate San Miguel Corp. plans to raise P50 billion from the issuance of preferred shares in November to partially fund the construction of the P740-billion Bulacan airport project and refinance maturing debt.
Based on the registration statement filed with the Securities and Exchange Commission, SMC plans to issue P50 billion in preferred shares as an initial tranche from the company’s P65-billion long-term preferred shares program.
Under the plan, SMC will offer 666,666 million cumulative, non-voting, non-convertible and redeemable preferred shares at P75 apiece.
SMC said it would use the net proceeds to repay peso-denominated short-term loan facilities and maturing bonds and fund the New Manila International Airport (NMIA) project.
The company said it would allot P16.53 billion to refinance short-term loans, P17.29 billion to repay bonds and P15.8 billion to invest in airport and other airport-related projects.
The shares will be issued from the company’s Series 2 preferred shares currently held in treasury. The offer period will be from Nov. 6 to Nov. 13, 2023.
SMC said it would list the preferred shares on the main board of the Philippine Stock Exchange on Nov. 20, 2023
The conglomerate tapped 11 banks to act as joint underwriters and book runners for the offering. These are Asia United Bank Corp., BPI Capital Corp., Philippine Commercial Capital Inc., SB Capital Corp., Bank of Commerce, China Bank Capital Corp., PNB Capital and Investments Corp., BDO Capital & Investments Corp., Land Bank of the Philippines and RCBC Capital Corp.
The conglomerate, which has investments in food and beverage, packaging, oil refinery, real estate and power generation, has been undertaking several big ticket infrastructure projects.
Among these are the P740-billionNMIA in Bulacan, Mass Railway Transit Line 7 and South Luzon Expressway TollRoad 4 project.
SMC also raised P13 billion in August from the issuance of 173.333 million Series 2-M preferred shares through private placement.
