SEC oks Meralco's P20B bond offer | Inquirer Business

SEC oks Meralco’s P20B bond offer

/ 01:33 PM November 29, 2013

MANILA, Philippines–The Securities and Exchange Commission has approved an application by utility firm Manila Electric Co. to offer as much as P20 billion in retail bonds.

Based on SEC documents, Meralco was given authority to register retail bonds with seven- and 12-year tenors with a base offer of P15 billion and an option to upsize by P5 billion.  Proceeds will be used to partially refinance existing debt and boost funding for capital expenditures.

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


Prior to final maturity, the company may redeem in whole but not in part the 12-year bonds on the seventh year.


The offering carries a “put option” for bondholders, which means they may require Meralco to redeem in whole or in part the bonds.  For the seven-year bonds, the put option date will be during the first interest payment date after the fifth year of issuance.  For the 12-year bonds, it will be on 10th year of issuance.

BPI Capital Corp. and First Metro Investment Corp. were named as the joint issue managers for the transaction.

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TAGS: bond offer, Business, Meralco, SEC

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