READ: SMC partners with international firms to build Bulacan airport
Metro Manila (CNN Philippines, August 22) — Listed San Miguel Corporation (SMC) revealed plans to issue fresh bonds to local investors to raise at least ₱10 billion.
In a disclosure, the diversified conglomerate said it is eyeing to float debt papers as part of its ₱60-billion borrowing program previously approved by the Securities and Exchange Commission (SEC).
While the final details of the IOUs are still being finalized, SMC Senior Vice President Sergio Edeza said the notes will a five-year maturity.
“The proceeds of the bond offering will be used to pay the maturing obligations of the company,” SMC told the Philippine Stock Exchange.
Last week, San Miguel officially bagged the ₱734-billion contract to build, operate, and maintain the New Manila International Airport in Bulacan. The Department of Transportation said the new gateway must be up and running in four to six years.
In a prospectus filed with the SEC, San Miguel said the latest offering will be the fourth and final tranche in its bond program approved in 2017.
The holding firm led by tycoon Ramon Ang netted ₱26.15 billion during the first semester, lower than the ₱27.59 billion it booked during the same period in 2018.
The notes can be availed of with a minimum ₱50,000 investment, plus increments of ₱10,000. The debt notes will be offered between September 23 and 27, to be issued on October 4 and are due by 2024. Pricing will be determined on September 18.
SMC shares closed at ₱175.30 on Thursday, down 0.34 percent.
Local credit rater Philratings gave SMC’s fresh bond float a “PRS Aaa” rating, the highest on its scale. It means the issuing firm has “very strong” capacity to settle its dues.
