SMC gets OK to sell up to P30 billion bonds

MANILA, Philippines — San Miguel Corp., (SMC), the country’s diversified conglomerate, has received its permit to sell up to P30 billion in fixed rate bonds.

This forms part of a planned issuance of up to P50 billion bonds over the next three years.

In a disclosure yesterday, the beer, food, power and infrastructure conglomerate said the P30 billion bonds, comprising six-year I bonds due 2027, have a fixed initial interest rate equivalent to 3.3832 percent per annum.

SMC commenced its offer period yesterday to run until June 28.

Proceeds will be used for the company’s general funding requirements.

SMC is allocating P100 billion for capital expenditures this year to fund recovery efforts and sustained investments in big-ticket projects. The amount is higher than the P90 billion capex for 2020.

SMC president and CEO Ramon Ang said the conglomerate is investing in big-ticket infrastructure projects, including the Manila International Airport in Bulacan and the rehabilitation of Pasig River to help the economy get back on track.

“We will build back better, and you can count on San Miguel to lead from the front,” Ang said.