SMC goes ahead with P30-B bond issuance

The Securities and Exchange Commission  has approved the request of diversified conglomerate San Miguel Corp. (SMC) to sell up to P30-billion worth of fixed-rate bonds.

In a regulatory filing submitted by assistant corporate secretary Mary Rose Tan, SMC said the issuance includes P20 billion of fixed-rate bonds with an oversubscription option of up to P10 billion.

“The offer period shall commence at 9:00 a.m., Manila time, on March 5, 2018 and ending at 5:00 p.m,” it said.

The bonds consist of Series E due 2023 with a fixed rate equivalent to 6.2500 percent a year, and seven-year Series F due 2025 with a fixed interest rate equivalent to 6.6250 percent a year.

The offer will also include 10-year Series G bonds due 2028 with a fixed rate equivalent to 7.1250 percent per year.

“The bonds will be listed on the Philippine Dealing & Exchange Corp. on the issue date, March 19, 2018,” the company said.

In a separate prospectus, SMC said proceeds from the bond offer will be used to pay existing loan obligations and finance investments in subsidiaries.

“The decision to use the net proceeds for either purpose is subject to the sound business judgment of management,” it said. —VDS, GMA News