SMC’s food unit finalizes P15-billion maiden bond offering

San Miguel Food and Beverage Inc., a unit of San Miguel Corp., finalized the terms of a planned P15-billion maiden bond offering.

San Miguel Food said in a disclosure to the stock exchange the five-year series A bonds due 2025 would have a fixed interest rate equivalent to 5.05 percent a year, while the seven-year series B Bonds due 2027 would offer a fixed interest rate of 5.25 percent yearly.

San Miguel Food set the offering period from February 24, 2020 to March 2, 2020. It will issue and list the bonds with Philippine Dealing & Exchange Corp. on March 10, 2020.

San Miguel Food started offering the bonds after securing a permit to sell from the Securities and Exchange Commission.

The bonds will be issued in minimum denominations of P50,000 each and in integral multiples of P10,000 thereafter.

The company plans to use the net proceeds from the offering to fund the redemption of outstanding 15,000,000 Series 2 Perpetual Preferred Shares. San Miguel Food will redeem the shares on March 12, 2020 at a redemption price of P1,000 per share.

San Miguel Food said it migh redeem in whole the outstanding Series A Bonds at 101.0 percent on the third year, or at 100.5 percent on the fourth year. For the Series B Bonds, the company may redeem the bonds at 101.0 percent on the fifth year or 100.5 percent on the sixth year.

BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. have agreed to act as joint lead underwriters and book runners of the offering.

The bonds received top credit rating from local debt watcher Philippine Rating Services Corp., which means the obligations are expected to have minimal credit risk.

Topics: San Miguel Food and Beverage Inc. , San Miguel Corp. , bond offering
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.
AdvertisementGMA-Working Pillars of the House