Diversified conglomerate San Miguel Corp. said it plans to issue up to P20 billion worth of fixed-rate bonds to pay debt.
San Miguel said in a disclosure to the stock exchange it would issue P15-billion bonds with P5-billion oversubscription option, as a part of the company’s three-year shelf-registration of up to P60 billion.
Proceeds from the bond offering will be used to partially refinance loans provided by various local banks to San Miguel and prepay a portion of its US dollar-denominated debt.
San Miguel said the P20-billion bond offering obtained highest credit rating of PRS Aaa, with a stable outlook, from ratings agency Philippine Rating Services Corp.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
San Miguel is one of the largest conglomerates in the Philippines with diversified businesses ranging from beverages, food, packaging, fuel and oil, energy and infrastructure.
The company said net income jumped 125 percent in the first nine months to P42.9 billion from P19.08 billion recorded in the same period a year ago, as all the core businesses posted double digit growth in terms of operating income.
