San Miguel Corp. launched a ₱30 billion preferred share sale on Wednesday, July 15, kicking off a major fundraising drive to bankroll its massive international airport project in Bulacan and refinance looming debt maturities.

The diversified conglomerate is offering 266.67 million Series 2 Preferred Shares at ₱75 apiece, with an option to sell an additional 133.33 million shares to meet excess demand, according to a filing with the Philippine Stock Exchange.

The sale, which received Securities and Exchange Commission approval on July 14, runs from July 15 through July 23, with listing scheduled for August 3.

Yields on the multi-tranche offering reflect the current high-rate environment. San Miguel set the initial dividend rate for the Series 2-V shares at 8.0401 percent, the Series 2-W shares at 8.3570 percent, and the Series 2-X shares at 8.6483 percent.

The fundraising comes as the food-to-power empire, led by billionaire Ramon Ang, navigates an intensive capital expenditure cycle. The company plans to inject up to ₱5 billion of the proceeds within the next year into its infrastructure arm. The capital is primarily earmarked to fund construction of the New Manila International Airport and its surrounding aerotropolis in Bulacan province, a key growth driver just north of the capital.

However, the primary focus of the capital raise is balance sheet management. If the oversubscription option is fully exercised, San Miguel will allocate ₱6.31 billion to pay down short-term liabilities with BDO Unibank Inc. totaling ₱6.62 billion. This includes a ₱5.17 billion facility drawn in May and a ₱1.45 billion loan maturing in June that was originally used to redeem older preferred shares.

From the ₱20 billion base offer, the company will use up to ₱6.02 billion to settle 5.7613 percent Series C bonds maturing in March 2027. Another ₱13.81 billion—potentially rising to ₱17.44 billion if the overallotment option is exercised—is earmarked to retire 5.2704 percent Series J bonds also due in March 2027.

Any remaining funding gaps will be covered by internal cash flow, the company said. Prior to disbursement, the net proceeds will be held in short-term liquid instruments.

Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp. are serving as joint issue managers, leading a syndicate of local banks acting as joint lead underwriters and bookrunners. (James A. Loyola)