SMC raises P20 billion from preferred share sale

MANILA, Philippines — San Miguel Corp. (SMC), the country’s diversified conglomerate, has successfully raised P20 billion from its Series 2 preferred shares.

SMC sold 266 million Series 2-J preferred shares to retail, institutional and trading participants of the Philippine Stock Exchange at P75 each.

The shares have a dividend rate of 4.75 percent per annum.

“We are very happy with the outcome of this offering. There’s a lot of optimism riding on a recovery in 2021 and while there is still some reason for caution, investors are confident enough that we can deliver on our commitment to build back better and pursue projects that are crucial to the recovery and future growth of our country,” said SMC president Ramon Ang.

The preferred share issuance represents the initial tranche under SMC’s shelf registration of up to 533 million shares to be sold within a period of three years.

The conglomerate is now preparing to issue the second tranche in the remaining part of the year.

SMC will use proceeds of the first issuance for investments in projects, particularly the New Manila International Airport in Bulacan and Mass Rail Transit 7.

The company is the proponent of a massive P734-billion airport project in Bulakan, Bulacan with construction expected to commence soon.

The company tapped BDO Capital and Investment Corp, BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Corp. as joint issue managers, joint underwriters and bookrunners for the transaction.