Conglomerate San Miguel Corp. is selling P20 billion in fixed-rate bonds taken out of the balance of a P50-billion shelf registration lodged with the regulator.
The proposed sale consists of P15 billion as base offer and an oversubscription option of another P5 billion. The Series O bonds will mature on 2030 and the Series P bonds on 2034.
The estimated net proceeds from the sale, assuming a full exercise of the oversubscription option, amount more or less P19.75 billion after fees, commissions and expenses.
“The net proceeds of the offer shall be used for investments in Manila International Airport (MIA) and other airport related projects in Bulakan, Bulacan and/or redemption of Series I Bonds as a result of the put option exercise of its bondholders, and repayment of Series F Bonds,” the company said in its registration statement.
San Miguel Aerocity Inc. in 2019 signed a concession agreement with the Department of Transportation to construct and operate MIA envisioned as an aerotropolis, fill the gap and set the standard for a modern, world-class international airport addressing current and future capacity requirements for air travel in the Philippines.
SMAI is 100 percent controlled by San Miguel Holdings Corp. which is also a wholly-owned subsidiary of SMC.
The Bank of Commerce, BDO Capital and Investment Corp. and China Bank Capital Corp. were picked as joint issue managers of the offer, while Asia United Bank Corp., BPI Capital Corp., PNB Capital and Investment Corp., Bank of Commerce, China Bank Capital, RCBC Capital Corp., BDO Capital, Philippine Commercial Capital Inc. and SB Capital Investment Corp. were designated joint lead underwriters and bookrunners.
