Diversified conglomerate San Miguel Corporation has filed with the Securities and Exchange Commission a Registration Statement and Preliminary Prospectus for the shelf registration of P60-billion worth of Fixed Rate Bonds.

In a disclosure to the Philippine Stock Exchange, the firm said the bonds will be offered within a period of three years at an issue price of 100 percent face value.


SMC also filed the Offer Supplement for the initial offering of up to P25 billion Fixed Rate Bonds with an oversubscription option of up to P5 billion.

Philippine Rating Services Corporation (PhilRatings) has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, to SMC’s proposed bond issuance of up to P30 billion.

Proceeds from the proposed bond issuance will be used to refinance the short-term loans availed by SMC to redeem its Series 2C and 2E Preferred Shares.

PhilRatings also maintained its Issue Credit Rating of PRS Aaa, with a Stable Outlook, for SMC’s P90 billion outstanding rated bonds.


Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

A Stable Outlook, on the other hand, indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.

PhilRatings said the ratings and the corresponding outlook were assigned given the well-entrenched market leadership of SMC’s diversified portfolio of businesses and the Company’s highly experienced management team.

It also considered SMC’s improved profitability, driven by the sustained recovery of its major businesses; and its adequate liquidity, supported by stable cash flow generation.

PhilRatings also noted that the proposed bond issuance will not result in an additional debt burden for this round of issuance, as the proceeds will be used for refinancing.

The issuance will also replace short-term loans, enabling SMC to lengthen the tenor of its debt.

SMC continued its steady recovery, with its consolidated sales for the first nine months of 2021 posting an increase of 22 percent year-on-year to P650.6 billion. Such was driven by continuous volume and revenue growth across its major businesses.

Given higher sales during the period, coupled with group-wide cost management initiatives and enhanced operational efficiencies, consolidated operating income doubled from P41.5 billion in the first nine months of 2020 to P87.7 billion in the same period this year.

Consolidated net income likewise tripled from P10.7 billion to P34.2 billion. Profitability margins and returns also improved.

Source: Manila Bulletin (https://mb.com.ph/2021/12/07/smc-to-raise-up-to-p30-b-from-fixed-rate-bonds/?utm_source=rss&utm_medium=rss&utm_campaign=smc-to-raise-up-to-p30-b-from-fixed-rate-bonds)