SMC, AEV slate separate bond offerings totaling P40 billion


San Miguel Corporation (SMC) and Aboitiz Equity Ventures (AEV) are raising a combined P40 billion from the issuance of fixed-rate bonds shelf-registered with the Securities and Exchange Commission.

In a disclosure to the Philippine Stock Exchange, SMC said it has filed with the SEC a Registration Statement and Preliminary Prospectus for the shelf registration of Fixed Rate Bonds in the aggregate principal amount of up to P50 billion.

The bonds will be offered within a period of three years at an issue price of 100 percent face value.

SMC said it has also filed an Offer Supplement for the initial offering of up to P20 billion Fixed Rate

Bonds with an oversubscription option of up to P10 billion. The six-year bonds are slated for offering to retail and institutional investors in June this year.

“The entire proceeds for this Offer will be used for re-denominating the existing dollar denominated obligations of the Company and expenses of the shelf registration and offering of the Offer Bonds,” SMC said. 

Meanwhile, AEV said its Board of Directors has approved the issuance of the third tranche of the company’s fixed-rate retail bonds in the amount of up to P10 billion, inclusive of oversubscription.

The bonds will come from AEV’s P30 billion fixed-rate retail bonds registered in 2019 under the shelf registration program of the SEC.

Aboitiz Logo (via aboitiz.com/Manila Bulletin)
Aboitiz Logo (via aboitiz.com/Manila Bulletin)

“Depending on market conditions, the Third Tranche Bonds are expected to be offered to the general public during the third quarter of 2021,” AEV said.

The firm said its Board of Directors has appointed BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, SB Capital Investment Corporation, and First Metro Investment Corporation as Joint Issue Managers, Joint Bookrunners, and Joint Lead Underwriters for the Third Tranche Bonds.

AEV intends to list the Second Tranche Bonds with the Philippine Dealing and Exchange Corp. (PDEx).