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SEC OKs San Miguel Corp, Aboitiz bond sale

by Jericho Zafra

THE Securities and Exchange Commission (SEC) has approved the planned bond offerings of the country’s multinational conglomerates, San Miguel Corp. (SMC) and Aboitiz Equity Ventures Inc. (AEV).

The Commission en banc decided to make the registration statements of SMC and AEV effective during their meeting last November 17.

SMC, known for beverages, food manufacturing, packaging, fuel and oil, power, and infrastructure, will issue up to P40 billion fixed rate bonds with an oversubscription option amounting to P20 billion. 

SMC might earn up to P58.65 billion from the offer if the oversubscription option is fully exercised.

“Proceeds will be used for the optional and final redemption of certain securities of the company, as well as the refinancing of certain dollar-denominated obligations and peso-denominated facilities,” the SEC said in a statement.

While AEV, which ventures into banking and finance, property, power generation, distribution, and retail electricity supply, may offer up to P30 billion in bonds.

AEV could sell the bonds in tranches over the next three years as part of its P30-billion debt securities program.

The listed conglomerate will offer P550 million for the first tranche, which will be granted along with up to P7.45 billion in fixed-rate bonds as the fourth and final tranche of its debt securities program, which was approved in 2019.

As part of the oversubscription option, the corporation will issue up to P12 billion worth of bonds from the 2022 program.

If the oversubscription option is fully exercised, the SEC noted that the projected amount of the offer’s proceeds is P19.76 billion.

The AEV plans to use the proceeds to partly finance the acquisition of Mactan-Cebu International Airport by its wholly-owned subsidiary Aboitiz InfraCapital.

Aboitiz InfraCapital plans to take over the Cebu airport from Megawide Construction Corp. and India’s GMR Infrastructure of tycoon Edgar Saavedra.

Photo Credit: Securities and Exchange Commission

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