SMFB gets SEC go-signal to issue up to P15 billion bonds

MANILA, Philippines — San Miguel Food and Beverage Inc. (SMFB) has received the green light from the Securities and Exchange Commission to issue up to P15 billion worth of bonds.

According to its registration statement, the food and beverage flagship of San Miguel Corp. intends to offer the fixed-rate bonds in two series at face value.

SMFB plans to use proceeds from the offer for the redemption of the outstanding 15 million  Series 2 perpetual preferred shares to be redeemed on March 12 at a redemption price of P1,000 per share.

For the latest offering, Series A Bonds will mature in five years, while the Series B Bonds will be repaid seven years from the issue date.

They will be listed and traded in denominations of P10,000 on the Philippine Dealing & Exchange Corp., the country’s trading floor for fixed-income securities.

SMFB tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp have agreed to act as joint lead underwriters and bookrunners for the offer.

In the nine months to September 2019, SMFB posted a flat net income at P22.9 billion, while net sales grew slightly to P226.4 billion. Beer grew eleven percent, spirits 20 percent, and food six percent.

Consolidated operating income remained steady at P33.6 billion due to price and raw material cost pressures.