The Philippines: San Miguel Corp. rolls out P30 bln multi-tenor retail bond offering

Conglomerate San Miguel Corp. rolled out on March 5 a multi-tenor local retail bond offering worth as much as P30 billion, proceeds from which will be used to refinance debt and invest in various businesses, the Inquirer reported.

The bonds were priced to yield 6.25 percent per annum for the five-year tenor, 6.625 percent for the seven-year tenor and 7.125 percent for the 10-year tenor, SMC disclosed to the Philippine Stock Exchange on March 5.

The offer will run until March 9 and listed on the Philippine Dealing & Exchange Corp. on date of issuance on March 19.

The base offer size is P20 billion but SMC has the option to upsize the offering by another P10 billion.

SMC received from the Securities and Exchange Commission permit to sell these securities on March 2.

The bonds will be issued in scripless form in minimum denominations of P50,000 each and in multiples of P10,000 thereafter.

Seven big banks are managing the offering: BDO Capital & Investments Corp., BPI Capital Corp., Chinabank Capital, First Metro Investments Corp., ING, SB Capital and Standard Chartered.

Local credit watcher Philippine Rating Services Corp.(PhilRatings) has assigned a triple-A rating on this new issuance, which represents the third tranche of SMC’s three-year debt securities program of up to P60 billion. The rating has a “stable” outlook.

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

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