The Securities and Exchange Commission approved the bond offers for San Miguel, Aboitez

The Securities and Exchange Commission approved San Miguel Corp.’s bond offering. and Aboitiz Equity Ventures Inc. (AEV).

At its open meeting last week, the Securities and Exchange Commission approved a San Miguel filing statement for up to 60 billion pesos of fixed-rate bonds and an AEV for 30 billion pesos of pending shelf filings.

San Miguel’s offering consists of up to 40 billion pesos in fixed-rate notes, with an option to oversubscribe up to 20 billion pesos. The offering consists of Series L notes due 2028, Series M notes due 2029, and Series N notes due 2029.

Assuming the option to oversubscribe is fully exercised, San Miguel could net up to 58.65 billion pesos from the offer.

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

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

The company has hired BDO Capital and 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. Philippine Commercial Capital Inc as joint principal underwriters and bookrunners of the offer.

AEV’s offering, meanwhile, is the P30 billion shelf registration program, which it will offer in three years.

For the first tranche, AEV will provide 550 million pesos, which will be issued along with up to 7.45 billion pesos of fixed-rate bonds that comprise the fourth and final tranche of the shelf bond program approved in 2019.

The company will also offer up to 12 billion pesos in bonds from the 2022 program as part of the option to oversubscribe. Proceeds from the offering are expected to be pesos 19.76 billion, assuming that the option to oversubscribe is fully exercised.

AEV plans to use the proceeds to partially fund the acquisition of GMR-Megawide Cebu Airport Corp. by its wholly owned subsidiary Aboitiz InfraCapital. Part of the proceeds will also go to refinancing outstanding debts.

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

AEV has selected BDO Capital, BPI Capital, China Bank Capital and First Metro Investment Corp. as joint offering managers, joint lead underwriters and joint offering book managers.

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