Philippines: San Miguel’s food unit gets SEC nod for $295m bond sale

A logo of San Miguel Corporation (SMC) is seen at a main office in Ortigas city, metro Manila February 12, 2016. REUTERS/Romeo Ranoco

San Miguel Food & Beverage Inc (SMFB), the food unit of conglomerate San Miguel Corporation (SMC), is raising as much as 15 billion pesos ($295 million) from a new retail bond offering, according to the company’s disclosure on Monday.

The Philippine-listed subsidiary of SMC said the bonds will be issued on March 10 and will be comprised of five-year Series A Bonds due 2025 with a fixed interest rate equivalent to 5.05 per cent per annum, and seven-year Series B Bonds due 2027 with a fixed interest rate of 5.25 per cent per year.

The bond offer has received the approval of the Securities and Exchange Commission (SEC), San Miguel F&B said in a disclosure to the Philippine Stock Exchange.

The bonds shall be issued in minimum denominations of 50,000 pesos ($983) each, and in integral multiples of 10,000 pesos ($197) thereafter. They will be listed and traded in denominations of 10,000 on the Philippine Dealing & Exchange Corp.

The bonds have been rated PRS Aaa by the Philippine Rating Services Corporation (PhilRatings) last December. PRS Aaa is the highest rating by PhilRatings

The listed firm, which revealed its plan to float bonds in November, said it will use the proceeds to settle maturing loans by March 12.

SMFB posted consolidate revenues of 226.36 billion pesos ($4.4 billion) in the first nine months of last year, up 10 per cent over the same period in 2018. Total food revenues increased by 6 per cent to 101.05 billion pesos ($1.98 billion) while its beer business posted 103.88 billion pesos ($2 billion) of revenue, up 11 per cent from the previous period.

“We are committed to delivering strong financial returns over the long-term through our diversified and sustainable portfolio of businesses,” said Ramon S. And, SMFB President and CEO, in an earlier announcement.

Last month, listed food giant Jollibee Foods Corporation completed its dollar bond market debut with the issuance of $600-million guaranteed senior perpetual capital securities.

The transaction marked the first-ever bond or perpetual securities issuance from Jollibee and the first time that the company has tapped the capital markets since its initial public offering in 1993. The issuance is one of the first by an Asian restaurant company.

Jollibee said proceeds from the offering are intended primarily to refinance the short-term debt from the acquisition of International Coffee and Tea, owner of American specialty coffee and tea brand The Coffee Bean & Tea Leaf. The Filipino company acquired 100 per cent of the US firm for $350 million, its biggest multinational acquisition so far.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.