SMC raising ₱20 B from bond offering
Diversified conglomerate San Miguel Corporation is planning to raise ₱20 billion from the offering and issuance of fixed rate Peso-denominated bonds.
In a disclosure to the Philippine Stock Exchange, the bonds will be issued out of the remainder of its existing ₱50 billion shelf-registered Peso-denominated bonds.
SMC said its board of directors has approved the planned issuance as well as the filing of the appropriate registration statement and offer supplement with the Securities and Exchange Commission and the submission of the listing application with the Philippine Dealing Exchange Corporation of the Peso bonds.
Last December 2023, SMC had raised P34 billion from the sale of firm offer preferred shares and over-subscription option shares during its follow-on offering (FOO).
SMC formally listed its Series 2-L, 2-N and 2-O preferred shares through a bell ringing ceremony held last December 1, 2023.
SMC had recently registered ₱65 billion worth of preferred shares with the SEC and slated a follow-on offering for up to ₱30 billion in November to pay debt and fund its massive airport project.
The SEC approved SMC’S Registration Statement and Prospectus for the Shelf Registration of up to 866.67 million Series 2 Preferred Shares to be offered within a period of three years.
It also approved the Offer Supplement for the Public Offering of 400 million Series 2 Preferred Shares with an Oversubscription Option of up to 266.67 million Series 2 Preferred Shares.
The Offer Shares were issued in three subseries: Series 2-L, Series 2-N, and Series 2-O, at an offer price of ₱75.00 per share. The Offer Shares were issued from the Series 2 Preferred Shares currently held in treasury of the Company.
The first tranche consisted of ₱30 billion firm offer shares and an oversubscription of up to ₱20 billion.
SMC will use the proceeds from the offering for the repayment of Peso-denominated short-term loan facilities; repayment of the Series B Bonds and Series H Bonds; and, in the event of exercise of the oversubscription option, additional investments in the Manila International Airport and other airport-related projects.