SEC OKs SMC, AEV bond sale

MANILA, Philippines — The Securities and Exchange Commission (SEC) approved the bond offerings of two of the country’s biggest conglomerates, San Miguel Corp. (SMC) and Aboitiz Equity Ventures Inc. (AEV).

SMC will issue up to P60 billion of fixed-rate bonds while AEV will issue up to P30 billion of bonds under shelf registration, subject to the companies’ compliance with certain remaining requirements.

SMC will offer to the public up to P40 billion of fixed-rate bonds, with an oversubscription option of up to P20 billion, consisting of Series L bonds due 2028, Series M bonds due 2029, and Series N bonds due 2029.

Assuming the oversubscription option is fully exercised, SMC could net up to P58.65 billion from the offer, according to its filing with the SEC.

Proceeds will be used for the optional and final redemption of certain securities of the company, as well as the refinancing of certain dollar-denominated obligations and peso-denominated facilities.

Similarly, AEV may offer the bonds under its P30-billion debt securities program in tranches within three years. For the first tranche, the listed conglomerate will offer P550 million, which will be issued alongside up to P7.45 billion of fixed-rate bonds comprising the fourth and final tranche of its debt securities program approved in 2019.

The company will likewise offer up to P12 billion of bonds from the 2022 program as part of the oversubscription option.

Proceeds from the offer are estimated at P19.76 billion, assuming the oversubscription option is fully exercised.

AEV plans to use the proceeds to partially finance the acquisition of GMR-Megawide Cebu Airport Corp. by its wholly owned subsidiary Aboitiz InfraCapital.

The company tapped BDO Capital, BPI Capital, China Bank Capital, and First Metro Investment Corp. as joint issue managers, lead underwriters and bookrunners for the offer.