The Saudi Electricity Company has approved SMC and AEV bond offers

Company regulators approved San Miguel Corp.’s plans. (SMC) and Aboitiz Equity Ventures Inc (AEV) to borrow up to 60 billion pesos and 30 billion pesos, respectively, through bond offerings.

“Favorably considered” by the Securities and Exchange Commission (SEC) en banc during its November 17 meeting, SMC’s proposal to offer 40 billion pesos in fixed-rate notes, with an option to oversubscribe by 20 billion pounds, and a 2022 debt securities program of AEV at a value of £30 billion. .

The SEC said in a statement on Friday that the two companies must still comply with “certain remaining requirements.”

SMC’s offering will consist of Series L notes due 2028, Series M notes due 2029, and Series N notes due 2029. “Assuming the option to oversubscribe in full, SMC could net up to P58.65 billion of offering,” the SEC said.

The bond will be offered at face value and will be listed on Philippine Dealing and Exchange Corp. (PDEx).

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The proceeds will be used for the optional and final redemption of certain securities as well as the refinancing of certain dollar-denominated liabilities and peso-denominated facilities.

BDO Capital & Investment Corp. and China Bank Capital Corp. and PNB Capital and Investment Corp. and Bank of Commerce and BPI Capital Corp. and SB Capital Investment Corp. and RCBC Capital Corp. and Asia United Bank Corp. and Philippine Commercial Capital Inc. Dispensed as major underwriters and record managers.

For AEV, the bond will be offered in tranches over three years. The first tranche will be in the amount of 550 million pesos, which will be issued along with up to 7.45 billion pesos of fixed-rate notes that constitute the fourth and final tranche of the debt securities program approved in 2019.

Up to 12 billion pesos of bonds from the 2022 program will also be offered as part of the option to oversubscribe. Proceeds are expected to reach 19.76 billion pesos, assuming that the option to oversubscribe is fully exercised.

The first tranche of the 2022 program and the last tranche of the 2019 program will also be offered at face value and will be listed on PDEx.

The proceeds will be used to partially fund the acquisition of GMR-Megawide Cebu Airport Corp. by AEV Aboitiz InfraCapital unit and for the refinancing of outstanding debts.

BDO Capital, BPI Capital, China Bank Capital, and First Metro Investment Corp. As joint managers of the offer, lead underwriters and joint book managers of the offer.

Shares of SMC gained 10 centavos on Friday to close at P98, while AEV added 40 centavos to end the day at P56.75.

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