SMC seeks to raise P50B via bond market

Conglomerate San Miguel Corp. (SMC) is asking corporate regulators to approve its plan to raise as much as P50 billion in fresh funds from a series of bond offerings in the next three years.

Bulk of the amount can be raised in the first tranche of the offering, which will be worth as much as P30 billion.

In a disclosure to the Philippine Stock Exchange on Monday, SMC said it had filed with the Securities and Exchange Commission a registration statement and preliminary prospectus for the shelf registration of fixed rate bonds amounting to as much as P50 billion.

SMC likewise filed an offer supplement for the initial offering of up to P20 billion fixed rate bonds with an oversubscription of as much as P10 billion.

Under the shelf registration window of the SEC, securities to be issued in tranches may be filed under one registration, valid for a period not exceeding three years.

The current record-low interest rate regime presents ample opportunity for corporations to lock in long term funds for their medium-term capital expenditure.

In the case of SMC, among the big-ticket projects on the pipeline are the Bulacan Airport Project and the Light Railway Transit (MRT-7) project from Quezon City to Bulacan.

Last January 14, SMC Infrastructure opened Skyway Stage 3 to the public, cutting travel time from the South Luzon Expressway (SLEx) in Alabang to North Luzon Expressway (NLEx) in Balintawak to 25-30 minutes with a speed limit of 60 km/h.