Conglomerate San Miguel Corp. raised P20 billion from the issuance of fixed-rate bonds on strong demand from retail investors, an underwriter handling the transaction said Tuesday.
BPI Capital Corp. co managing head Eric Luchangco said in an interview the bond offering was over 1.5 times oversubscribed at the end of the offering period. Retail investors accounted for a little over 75 percent of the total issuance while institutional investors subscribed to a little less than 25 percent.
“Demand for the bonds was very good. We saw strong demand across the tenors,” Luchangco said.
“The strong demand was driven primarily by retail investors but we did have participation from institutional investors,” he said.
San Miguel raised P6.9 billion for the series 5-year Series A Bonds due 2022 with an interest rate of 4.8243 percent per annum, P7.3 billion for the 7-year Series B Bonds due 2024 with interest rate of 5.2840 percent and P6 billion for the 10-year Series C Bonds due 2027 with fixed interest rate of 5.7613 percent.
The bonds will be listed with the Philippine Dealing and & Exchange Corp. on March 1.
The P20-billion bond is a part of the company’s three-year shelf registration of up to P60 billion.
The remaining unissued amount will be placed under shelf-registration which the company may issue over the next three years.
Proceeds from the bond offering will be used to partially refinance loans used to redeem US dollar-denominated loans.
San Miguel is one of the largest conglomerates in the Philippines with diversified businesses ranging from beverages, food and packaging to fuel and oil, energy and infrastructure.
The conglomerate plans to spend P281 billion in capital expenditures from 2017 to 2019 primarily to expand new and traditional businesses including infrastructure, power and food.
San Miguel set aside P63 billion in capital expenditures this year.
Share price of San Miguel closed down 0.8 percent to P106.60 Tuesday.
