SEC clears SMC, Vista Land fundraising programs | Inquirer Business

SEC clears SMC, Vista Land fundraising programs

/ 03:30 PM October 19, 2023

MANILA  -The Securities and Exchange Commission (SEC) has cleared the P65-billion long-term preferred share program of business tycoon Ramon Ang-led San Miguel Corp.

It also approved the P35-billion bond program of Manuel Villar Jr.’s Vista Land & Lifescapes Inc.

The SEC approved on Oct. 17 the shelf offerings of the two companies, allowing them to issue the shares and bonds over a three-year period.


SMC’s registration covers 866,666,700 “Series 2 preferred shares.”


The food, drinks, energy and infrastructure conglomerate will offer 400 million preferred shares at P75 apiece plus an oversubscription option for another 266.7 million shares.

SMC, whose businesses include San Miguel beer, power plants, oil refining and toll roads such the Metro Manila Skyway and South Luzon Expressway, indicated plans to sell the initial batch of preferred shares from Nov. 6-13 this year, a deal prospectus dated Sept. 12 showed.

“San Miguel expects to net as much as P49.62 billion from the initial tranche, assuming the oversubscription option is fully exercised,” the SEC said.

“The company intends to use a portion of the net proceeds to repay Philippine peso-dominated short-term loan facilities and previously issued bonds, and to invest in airport and airport-related projects,” it added.

The SEC said Vista Land will initially offer up to P10 billion worth of bonds, consisting of Series F bonds due 2026 and Series G bonds due 2028.

This offer involves a P6-billion base offer plus an oversubscription option for another P4 billion.


“The company estimated the net proceeds at more than P9.83 billion, assuming the oversubscription option is fully exercised. It intends to primarily use the net proceeds to refinance maturing obligations and for general corporate purposes,” the SEC said.

SMC tapped Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp. as joint issue managers for the offer, as well as a joint lead underwriter and bookrunner alongside Asia United Bank Corp., BPI Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp. and Union Bank of the Philippines.

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Vista Land hired China Bank Capital Corp., SB Capital Investment Corp., and Union Bank of the Philippines as joint lead underwriters and bookrunners for the offer with China Banking Corp. Trust and Asset Management Group named as trustees.

TAGS: Bonds, fundraising, preferred shares, SMC, Vista Land

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