December 4, 2022

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

In its en-banc meeting last week, the SEC approved the registration statement of San Miguel for up to P60 billion of fixed-rate bonds and AEV for P30 billion of bonds under shelf registration.

The San Miguel offering consists of up to P40 billion of fixed rate notes with an oversubscription option of up to P20 billion. The offering consists of L Series Notes due 2028, M Notes due 2029 and N Series Notes due in 2029.

Assuming the oversubscribe option is exercised in full, San Miguel could rake in as much as 58.65 billion pesos from the offering.

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

The bonds will be offered at par and will be listed on the Philippine Dealing and Exchange Corp. written down.

The Company has BDO Capital and Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp., Bank of Commerce, BPI Capital Corp., SB Capital Investment Corp., RCBC Capital Corp., Asia United Bank Corp. and Philippine Commercial Capital Inc. as joint lead underwriter and bookrunner for the offering.

AEV’s offer, meanwhile, is its P30 billion shelf registration program, which it will offer over three years.

For the first tranche, AEV will offer P550 million to be issued along with up to P7.45 billion in fixed rate notes that make up the fourth and final tranche of its shelf bond program approved in 2019.

The company will also offer bonds worth up to P12 billion from the 2022 program as part of the oversubscription option. Proceeds from the offering are expected to be P19.76 billion, subject to the oversubscription option being exercised in full.

AEV plans to use proceeds to partially fund acquisition of GMR-Megawide Cebu Airport Corp. through its wholly owned subsidiary Aboitiz InfraCapital. Part of the proceeds also goes to refinancing maturing liabilities.

The Notes, which comprise the first tranche of the 2022 program and the last tranche of the 2019 program, will be offered at par and will be listed on the PDEx.

AEV has advised BDO Capital, BPI Capital, China Bank Capital and First Metro Investment Corp. as Joint Issue Manager, Joint Lead Underwriter and Joint Bookrunner for the Offering.