SMC approves P80-B bond offer; CLI P5 B

Published September 22, 2022, 2:22 PM

by James A. Loyola

Diversified conglomerate San Miguel Corporation is planning to raise up to P80 billion from the issuance of fixed-rate Peso-denominated bonds.

In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has authorized the offering and issuance of the bonds amounting to up to P60 billion, with an oversubscription option of P20 billion.

The SMC Board has also authorized the filing of the appropriate Registration Statement and Prospectus with the Securities and Exchange Commission; and the filing of the listing application with the Philippine Dealing Exchange Corporation of the Peso Bonds.

“The Board has authorized the engagement of the services of underwriters, advisors, legal counsels, stock and transfer agent, receiving agent/bank, and other agents as may be necessary, proper or desirable to effect the offering,” said SMC.

Cebu Landmasters logo

Meanwhile, Cebu Landmasters Inc. said it has finalized the issue size of its maiden Fixed Rate Bond offering, with an aggregate principal amount of P5 billion across 3 tenors.

This initial issuance is the first from CLI’s shelf registration of P15 billion debt securities program to be utilized within three years.

CLI disclosed that its maiden retail bonds received strong demand from both institutional and retail investors, even as these were priced at the lowest end of the initial spread range.

Interest rates have been set for the 3.5-year Series A at 6.4222 percent, for the 5.5-year Series B at 6.9884 percent, and for the 7-year Series C at 7.5649 percent.

The public offering period is scheduled to run from Sept. 26 to Sept. 30, on the condition of receipt of the Permit to Sell from the SEC.