SMC raises P10 B notes

San Miguel Corp. (SMC) returned to the Philippine Dealing & Exchange Corp. platform for the second time this year and successfully listed its two-year fixed rate notes worth P10 billion.

With this, SMC’s outstanding listed issues now amount to P60 billion, which represents seven percent of the P872.88 billion listed bonds.

For the entire San Miguel Group, including San Miguel Brewery, South Luzon Tollway Corp., SMC Global Power and Petron Corp., the total outstanding listed issues amount to P157.11 billion which accounts for 18 percent of the aggregate outstanding amount of listed corporate bonds.

San Miguel senior vice president and treasury head Sergio Edeza led the ringing of the ceremonial bell on Friday to herald the start of trading of the SMC notes due 2020 in the secondary market.

The latest listing brought total new listings in PDEx at P80.36 billion, pushing the total level of tradable corporate debt instruments to P872.88 billion from 47 companies with 141 securities.

SMC said proceeds of the P10 billion offering would be used for refinancing existing obligations including possible redenomination of its dollar denominated debt and investments of its existing subsidiary in its various businesses.

SMC now has businesses across a wide variety of industries such as food and beverage through San Miguel Food and Beverage; petroleum through Petron Corp.; power through San Miguel Global Power Holdings Corp.; infrastructure through SMC Infrastructure; liquor through Ginebra San Miguel Inc.; packaging through San Miguel Yamamura Packaging and the flagship beer business through San Miguel Brewery.

The company tapped BDO Capital & Investment Corp. and BPI Capital Corp. as joint lead underwriters and book runner while co-lead managers are the Development Bank of the Philippines, RCBC Capital and SB Capital and Investment Corp.

In the first quarter of the year, SMC posted a net income growth of 13 percent to P15.6 billion from P13.8 billion a year ago.

Consolidated recurring net income grew to P19.4 billion, 31 percent higher than the same period last year, powered by the robust performance of all its businesses.

Revenues and operating income, meanwhile, reached P234.3 billion and P32.7 billion, 20 percent and 19 percent higher than last year, respectively.