San Miguel to raise P20B via bond issuance

MANILA, Philippines — Conglomerate San Miguel Corp. of billionaire Ramon Ang aims to raise P20 billion from the issuance of fixed-rate bonds as part of its three-year bond program approved by the Securities and Exchange Commission (SEC).

In a stock exchange filing on Thursday, San Miguel said the amount represented the second and final tranche of its existing P50-billion SEC shelf-registered peso-denominated bonds.

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The company’s board of directors likewise approved the engagement of underwriters, advisers, legal counsels, stock and transfer agent, receiving agent, “and other agents as may be necessary, proper or desirable to effect the offering.”

It is set to file a registration statement and offer supplement with the SEC, and submit the listing application of the peso bonds to the Philippine Dealing Exchange Corp.

In June 2021, the SEC approved San Miguel’s bond offering under a three-year shelf registration program.

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The food and beverage giant had said that proceeds from the bond offering would be used to retire an existing dollar-denominated obligation.

The first tranche worth P30 billion was issued in July 2021, and was then known as the largest bond deal in the country pursued by a nonbanking company.

San Miguel, which also has interests in energy through San Miguel Global Power Holdings Corp. and Petron Corp., saw its earnings in 2023 swell by 67 percent to P44.7 billion as its core businesses delivered stronger growth.

Ang, the conglomerate’s president and CEO, earlier said they were optimistic that the country’s “robust macroeconomic fundamentals” would help sustain San Miguel’s growth this year.

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