Ayala, SMC to start offering fixed rate bonds

MANILA, Philippines - Two of the country’s biggest conglomerates, Ayala Corp. and San Miguel Corp. (SMC) will start offering their respective fixed rate bonds to the public starting today with target to issue the debt in early July.

Ayala Corp., is targeting to issue its seven-year P10 billion bonds – with a rate of 3.92 percent – on July 7, chief finance officer TG Limcaoco said over the weekend.

SMC Global Power Holdings Corp., is also targeting to issue P15 billion in fixed rate bonds on July 11, according to company officials.

Both Ayala and SMC Global Power will commence their offer period today.

“We start offer on Monday. Target issue date is July 7, the first issuance under the new administration. The rate is 3.92 percent, priced at the low end of the indicative range,” Ayala’s Limcaoco said.

Limcaoco said there has been strong demand among retail and institutional investors.

“This is the first tranche of our P20 billion shelf registration which was approved last Thursday.  I am very grateful to the SEC for their shelf registration rules which will benefit both issuers and investors as it allows quicker access to the capital markets,” he said.

Proceeds would be used to refinance the company’s maturing peso-denominated debt obligations.

Similarly, SMC Global Power will offer its bonds from June 27 to July 1, to be issued in five, seven and 10-year terms at P5 billion per series for a total of P15 billion, officials said over the weekend.