SMC to sell P15-billion 5-year bonds, part of P60-billion shelf registration

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CONGLOMERATE San Miguel Corp. (SMC) said it plans to sell P15 billion in fixed-rate, five-year bonds, that forms part of its P60-billion shelf registration (SR).

SMC said it filed with the Securities and Exchange Commission (SEC) the registration supplement for the offering, which will be known as Series D bonds due 2022.

The offer will be listed with the Philippine Dealing and Exchange Corp. (PDEX), the company said.

Earlier this year, the company issued P20 billion as its first tranche of offering.

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The San Miguel Group’s total share of listed issues reached P100.11 billion, representing 15 percent of the overall outstanding listed corporate bonds in PDEX.

Other San Miguel subsidiaries listed in the bond market are San Miguel Brewery Inc., South Luzon Tollway Corp., SMC Global Power and Petron Corp.

Meanwhile, the brewery subsidiary of San Miguel said its income grew 31 percent to P17.7 billion, from the previous year’s P13.51 billion.

Consolidated revenues amounted to P97.2 billion, 18 percent higher than the previous year’s P82.37 billion. As a result, operating income reached P27.2 billion, also higher the previous P22.63 billion.

SMB’s domestic operations reported its highest-ever sales volume of 202.6 million cases, 15 percent better than the previous year.

“The company synonymous with beer—nine out of 10 beers sold in the Philippines are San Miguel beer brands—aggressively ramped up distribution, and executed strong marketing campaigns and sales initiatives focused on increasing demand and consumption of its products,” it said.

Election-related spending, growth in consumer confidence and the positive outlook for consumer spending also helped sales, it said.

The company’s international operations also posted significant improvements in revenue and operating income driven by price adjustments, higher export volumes and cost-management programs.