San Miguel Corporation, one of the Philippines’ largest conglomerates, is raising up to Php30 billion in fixed-rate bonds denominated in the local currency while Integrated Micro-Electronics said it has received approval for its Php5 billion rights offer.
San Miguel Corporation raising $580m in peso fixed rated bonds
Listed conglomerate holding company San Miguel Corporation (SMC) is raising up to Php30 billion ($580 million) through peso-denominated fixed rate bonds due in 2023.
In a disclosure to the Philippine Stock Exchange (PSE), SMC said it had filed a registration statement with the Securities and Exchange Commission to issue Php20 billion in fixed-rate bonds with an oversubscription of up to Php10 billion.
The bonds represent the third tranche of the conglomerate’s Php60-billion bond shelf registration previously approved by the SEC. It was assigned an issue rating of PRS Aaa, with a stable outlook, by the Philippine Rating Services Corporations.
SMC said it will use the proceeds to refinance existing loan obligation and invest more in existing businesses, including SMC Global Power Holdings Corporation, San Miguel Holdings Corporation, and San Miguel Properties Incorporated. The bonds will be listed with the Philippine Dealing and Exchange Corporation.
“The decision to use the net proceeds for either purpose is subject to the sound business judgment of management taking into consideration among others, favorable market conditions; the demands of the business and operations of the company; and the capital requirements of its relevant subsidiary,” SMC disclosed.
Integrated Micro-Electronics eyes $97m in rights offer
Integrated Micro-Electronics, a listed electronics manufacturing firm, has received approval from the PSE for a stock rights offer that would raise up to Php5 billion ($97 million) for the company’s budgeted capital expenditures and debt refinancing.
In its disclosure, the company said it is offering up to 350 million new common shares to eligible shareholders. The said offering is exempted from registration from the Securities and Exchange Commission.
The offer is open to existing common shareholders of the Company as of 14 February 2018, who are located inside the Philippines or located in jurisdictions outside the Philippines and outside the United States where it is legal to participate in the offer.
AC Industrial Technology Holdings Inc, IMI’s controlling shareholder, and Resins Incorporated, which beneficially own an aggregate of 63.46 per cent of the company, have expressed their full support for the proposed offer. Integrated Micro-Electronics is a wholly-owned subsidiary of Ayala Corp.