SMC’s board of directors approved the issuance during its meeting yesterday.
The STAR/File
SMC issuing $3 billion bonds to finance infra projects
Iris Gonzales (The Philippine Star) - December 6, 2019 - 12:00am

MANILA, Philippines — San Miguel Corp., the country’s diversified conglomerate, is preparing to raise up to $3 billion through a medium term note program to fund its big-ticket infrastructure projects including its planned Bulacan airport.

SMC’s board of directors approved the issuance during its meeting yesterday.

Out of the $3 billion, SMC will issue an initial amount of $500 million worth of perpetual securities

“The program and the initial issuance of perpetual securities will both be registered at the Singapore Exchange,” SMC said.

SMC said the program would allow it to tap the financial market for funding through the issuance of securities and other similar instruments at different currencies other than Philippine peso, whether considered debt or equity for accounting purposes.

“The establishment of the program will give the company ready access to funding and will give the company the flexibility to fund its contemplated investments and projects such as the MRT-7 construction, the Bulacan airport project as well as the refinancing of its existing obligations and for other general corporate purposes,” SMC said.

SMC said that all instruments and securities that will be issued out of the program “shall be exempt securities and shall not be required to be registered with the Securities and Exchange Commission.

On top of this, SMC disclosed that its board of directors also approved the shelf registration with the Securities and Exchange Commission of P60 billion short term commercial papers.

Out of the amount, SMC will issue an initial amount of P15 billion with an oversubscription option of P5 billion which will be listed with the Philippine Dealing and Exchange Corp.

The diversified conglomerate has been developing big ticket infrastructure projects such as the MRT-7 which would connect the existing MRT line to Bulacan.

It also submitted to the government an unsolicited proposal to build a $15 billion international airport in Bulacan.

SAN MIGUEL CORP
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