MANILA, Philippines - Diversified conglomerate San Miguel Corp. has set the interest rate of its five-year 2022 bonds at 5.1923 percent per annum.
The company will issue up to P15 billion bonds, which forms part of the second tranche of a P60 billion debt program. The offering will commence on March 21 and will run until March 27.
These bonds will be listed on the Philippine Dealing & Exchange Corp. on April 7.
Of the P60 billion, SMC has already issued an initial tranche of P20 billion worth of five, seven and 10-year bonds.
Other San Miguel subsidiaries listed on the PDEx are San Miguel Brewery, South Luzon Tollway Corp., SMC Global Power and Petron Corp.
Proceeds from the bond offering will be used for refinancing.
The year-to-date total of new listings at PDEx amounted to P33.375 billion, bringing the total level of tradable corporate debt instruments toP 671.91 billion issued by 41 companies comprising 116 securities.
PDex said it may surpass the P150 billion target it earlier set for new debt listings this year despite the move of the US Federal Reserve to hike interest rates which could eventually raise borrowing costs.
The PDS Group also expects a lot of companies that are focused on infrastructure to raise funds given the Duterte administration’s plan to ramp up infrastructure spending.