SMC taps banks to raise $3 billion

Published February 6, 2020, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Diversified conglomerate San Miguel Corporation (SMC) has tapped international investment houses for its planned Medium-Term Note and Securities Program to raise up to $3 billion to fund its investments and refinance debt.

In a disclosure to the Philippine Stock Exchange, SMC said it has established the Program with Australia and New Zealand Banking Group Limited, Credit Suisse (Singapore) Limited, DBS Bank Ltd., Mizuho Securities Asia Limited, Standard Chartered Bank and UBS AG Singapore Branch as the Initial Dealers.

Under the Program, SMC may, from time to time, issue notes or perpetual capital securities in series or tranches, denominated in US dollars or any other currency agreed between the Corporation and the relevant dealers, on the same or different issue dates, up to the Program limit of US $3 billion.

The net proceeds from the issuance of the Instruments will be used by the Corporation to finance its investments and various projects, to refinance existing obligations, and for general corporate purposes.

Investments and projects include the MRT-7 construction and the Bulacan airport project, said SMC.

“There will be no public offering of Instruments to be issued under the Program in the Philippines or in the United States. The principal amount and timing of drawdown is under the Program are dependent on several factors, including but not limited to, market conditions and corporate needs of the Corporation,” said SMC.

Application has been made to the Singapore Exchange Securities Trading Limited for permission to deal in and quotation for any Instruments which are agreed at the time of issue thereof to be so listed on the SGX-ST.