San Miguel Corp., a prominent diversified investment holding company, announced on Tuesday that it has secured regulatory clearance to launch an offering of up to P20 billion worth of fixed-rate retail bonds.
In a disclosure to the Philippine Stock Exchange, San Miguel outlined that the offering consists of a base offer of P15 billion, with an oversubscription option of up to P5 billion. These bonds represent the second and final tranche under San Miguel’s P50 billion fixed-rate bonds shelf registered with the Securities and Exchange Commission, with the shelf registration set to expire on July 21.
The proceeds from the bond issuance will primarily fund investments in the Manila International Airport and other related airport projects over the next two years. Additionally, approximately P11.24 billion of the proceeds will be allocated for the redemption of Series I Bonds due to the exercise of the Put Option by bondholders, and P2.44 billion will be used for the repayment of Series F Bonds.
Scheduled for issuance on 3 July, the bonds will be offered in two tranches: a 6.5-year Series O Bonds maturing in 2031, featuring a fixed initial interest rate of 7.2584 percent per annum, and a 10-year Series P Bonds maturing in 2034, with a fixed initial interest rate of 7.7197 percent per annum. These retail bonds have been accorded a PRS Aaa rating with a Stable Outlook by the Philippine Rating Services Corp.
The offer period commenced on Tuesday and will run until 24 June. The bond offering will be jointly managed by Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp.
