SMC raising $500 M from perpetual securities

Published July 23, 2020, 10:00 PM

by James A. Loyola

Diversified conglomerate San Miguel Corporation is issuing US$500 million worth of Senior Perpetual Capital Securities with a fixed initial distribution rate of 5.50 percent per annum.

In a disclosure to the Philippine Stock Exchange, the firm said the securities will be issued under the its US$3 billion Medium Term Note and Securities Program and will be listed on the Singapore Exchange

Securities Trading Limited. 

For the planned issuance, SMC has engaged BofA Securities, DBS Bank Ltd. and Standard Chartered Bank as joint lead managers; DB Trustees (Hong Kong) Limited as trustee; and Deutsche Bank AG, Hong Kong Branch as paying agent. SMC said earlier that proceeds from the issuance will give it the flexibility to fund its contemplated investments and projects such as the MRT-7 construction, the Bulacan airport project, as well as the refinancing of its existing obligations and for other general corporate purposes.