SEC APPROVES SMC, AEV BOND OFFERINGS

CORPORATE regulators have approved San Miguel Corp. (SMC) and Aboitiz Equity Ventures Inc.’s (AEV) plans to borrow up to P60 billion and P30 billion, respectively, via bond offerings.

“Considered favorably” by the Securities and Exchange Commission (SEC) en banc during a November 17 meeting were SMC’s proposal to offer P40 billion in fixed-rate bonds, with an oversubscription option of P20 billion, and AEV’s P30-billion 2022 debt securities program.

Both companies still have to comply with “certain remaining requirements,” the SEC said in a statement on Friday.

SMC’s offering will consist of Series L bonds due 2028, Series

M bonds due 2029 and Series N bonds due 2029. “Assuming the oversubscription option is fully exercised, SMC could net up to P58.65 billion from the offer,” the SEC said.

The bonds will be offered at face value and will be listed on the Philippine Dealing and Exchange Corp. (PDEx).

Proceeds will be used for optional and final redemption of certain securities as well as the refinancing of certain dollardenominated obligations and peso-denominated facilities.

BDO Capital & Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp., Bank of Commerce, BPI Capital Corp., SB Capital Investment

Corp., RCBC Capital Corp., Asia United Bank Corp. and Philippine Commercial Capital Inc. have been tapped as lead underwriters and bookrunners.

As for AEV, the bonds will be offered in tranches within three years. The first tranche will be for P550 million, to be issued along with up to P7.45 billion of fixedrate bonds comprising the fourth and final tranche of a debt securities program approved in 2019.

Up to P12 billion of bonds from the 2022 program will also be offered as part of the oversubscription option. Proceeds are expected to amount to P19.76 billion, assuming the oversubscription option is fully exercised.

The first tranche of the 2022 program and the final tranche of the 2019 program will also be offered at face value and be listed on the PDEx.

Proceeds will be used to partially finance the acquisition of GMR-Megawide Cebu Airport Corp. by AEV unit Aboitiz InfraCapital and to refinance maturing debt.

BDO Capital, BPI Capital, China Bank Capital and First Metro Investment Corp. as the joint issue managers, joint lead underwriters and joint bookrunners for the offer.

SMC shares gained 10 centavos on Friday to close at P98, while AEV added 40 centavos to end the day at P56.75.