SMC to offer R30-B bonds in March

Diversified conglomerate San Miguel Corporation planning to offer its R30 billion worth of fixed-rate bonds from March 2 to March 8 and have these listed at the Philippine Dealing Exchange on March 15, 2018.

During the bond offering briefing for institutional investors, China Bank Capital Corporation Ryan Martin Tapia said underwriters will be accepting firm commitment letters from investors until February 28.

The interest rate for the bonds will also be set on February 28 and announced on March 1. The release of the final allocation of bonds will also be on March 1, 2018.

The R30-billion bonds represent the third tranche of the company’s three-year Debt Securities Program (DSP) of up to R60.0 billion.

Philippine Rating Services Corporation (PhilRatings) said it has assigned its highest issue rating of PRS Aaa with Stable outlook to San Miguel Corporation’s (SMC) proposed fixed-rate bond issue.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

A Stable outlook, on the other hand, indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings said the issue rating reflects SMC’s operating businesses provide sustainable income streams and cash flows, and which are seen to strengthen further with the expected completion of projects in the energy and infrastructure businesses.

It also considered SMC’s and its subsidiaries’ strong market position, SMC’s solid track record and continuous efforts to manage its debt position.

PhilRatings also noted that SMC is well prepared for significant future growth--backed by growing market demand and supported by a robust domestic economy. It also pointed to SMC’s experienced management team, which allows the company to create and execute a sound growth strategy.