The Securities and Exchange Commission has approved the plan of Gokongwei-led conglomerate JG Summit Holdings Inc. to sell as much P30 billion in bonds to retail investors to partly fund its investment in Manila Electric Co.
Based on a document from the SEC, the conglomerate was authorized to offer five-, seven- and 10-year bonds worth P15 billion with an option to increase by another P15 billion. JG Summit plans to begin the offering on Feb. 10 and end on Feb. 19.
Part of the net proceeds will be used to fund the recently completed acquisition of a 27-percent stake in Meralco, the country’s largest power distributor, from San Miguel Corp.
In October last year, JG Summit agreed to pay P72 billion for the equity stake, to be funded through a mix of equity and debt.
JG Summit plans to issue the bonds to institutional and retail investors through a general public offering.
BDO Capital & Investment Corp., BPI Capital Corp., First Metro Investment Corp., The Hong Kong and Shanghai Banking Corp. and Standard Chartered Bank were mandated as joint lead underwriters for this offering.
The bonds will be issued in scripless form in denominations of P50,000 as the minimum and in multiples of P10,000 thereafter.
These will be listed on fixed income trading platform Philippine Dealing & Exchange Corp.