San Miguel to raise P10B from debt paper sale
SAN MIGUEL Corp. (SMC) is raising P10 billion from the sale of debt papers to institutional investors.
The diversified conglomerate said in a disclosure to the stock exchange on Tuesday it is issuing P10 billion in corporate notes with a fixed interest rate equivalent to 5.25% per annum.
The debt, which was offered solely to qualified buyers, will be listed at the Philippine Dealing & Exchange Corp. on May 25.
BDO Capital & Investment Corp. and BPI Capital Corp. were tapped as joint lead underwriters and joint bookrunners.
SMC has the authority to issue pesodenominated fixed-rate corporate notes worth up to P20 billion after securing the green light from its board of directors on May 9.
Proceeds will be used either for refinancing the existing loan obligations and/or re-denomination of dollar-denominated obligations, or investments in its subsidiaries in existing businesses.
San Miguel has been refinancing its dollar-denominated debt to temper foreign exchange losses. In April, the conglomerate raised P20 billion from the sale of notes due 2023, 2025 and 2028.
San Miguel Head of Treasury Eduardo Sergio G. Edeza said in April the diversified conglomerate has reduced the share of foreign obligations to “less than 30%” of total debt from “a little over 40%” five years ago and intends to bring them down further to “as much as can be done.”
SMC recorded a net income attributable to equity holders of the parent of P7.335 billion in the first quarter of 2018, 18% higher than the P6.239 billion registered in the prior year, according to a regulatory filing.
Consolidated recurring net income of P19.4 billion for the first three months of the year, up by 31% from the same period a year ago, driven by the performance of its liquor, beer, food, packaging, and fuel businesses.
Shares in SMC added P1 or 0.69% to close at P145 apiece on Tuesday. —