The Philippines: San Miguel Corp. raise P20 billion from bond issuance

Diversified conglomerate San Miguel Corp. (SMC) intends to raise P20 billion from the offering of the remaining tranche of its bond program, MSN reported on April 11.

In a stock exchange filing, SMC said its board has authorized the offering and issuance of fixed-rate bonds of up to P20 billion.

The issuance will come from the remainder of SMC’s existing P50 billion Securities and Exchange Commission (SEC) shelf-registered peso-denominated bonds.

SMC will file the appropriate registration statement and offer supplement with the SEC as well as submit a listing application of the bonds with the Philippine Dealing Exchange Corp.

“The board likewise authorized the engagement of the services of underwriters, advisors, legal counsels, stock and transfer agent, receiving agent/bank and other agents as may be necessary, proper or desirable to effect the offering,” the company said.

SMC in 2021 raised P30 billion from the first tranche of its SEC-approved P50-billion shelf program.

The P30 billion fixed rate bonds series I due 2027, with a put option in 2024, carries an interest rate of 3.3832 percent per annum.

Proceeds were allocated by SMC for the company’s general funding requirements.

SMC expects to sustain its growth momentum this year, supported by its optimism in the country’s robust macroeconomic fundamentals and its strategy anchored on the company’s sustainability agenda.

The group sees its food and beverage business continuing its growth trajectory, aided by a positive consumer demand backdrop, favorable inflationary environment and strong brand following.

Sustained growth is likewise seen for its infrastructure business, with continued traffic growth across its network, along with increased travel throughout the country.

SMC targets to start airport development works at its P740-billion international gateway project in Bulacan next year.

SMC’s cement business, meanwhile, is expected to benefit from both private and public sectors’ push for economic and infrastructure development.

Net income of the conglomerate surged by 67 percent to P44.7 billion in 2023 on the back of significant volume growth across its key businesses.

SMC-owned San Miguel Brewery Inc. is the largest producer of beer in the Philippines, with nine out of ten beer drinkers preferring its brands.

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