SMC plans fundraising for infrastructure projects
SAN MIGUEL Corp. (SMC) is planning to raise funds from the overseas and local debt markets for its major infrastructure projects and investments.
In a disclosure, the listed conglomerate said its board of directors gave the go-signal for the establishment of a medium-term note program of $3 billion (around P153 billion). From the program, SMC will initially issue $500 million worth of perpetual securities. It will be registered at the Singapore Exchange.
SMC said this will allow the company to “tap the financial market for funding through the issuance of securities, including but not limited to corporate notes, bonds, and perpetual securities and other similar instruments at different currencies (other than Philippine pesos), whether considered debt or equity for accounting purposes.“
“The establishment of the program will give the company ready access to funding and give the company the flexibility to fund its contemplated investments and projects… as well as the refinancing of its existing obligations and for other general purposes,” SMC said.
Among SMC’s projects include the P62.7-billion Metro Rail Transit Line 7 and the P734-billion Bulacan airport project, which is being undertaken with the government.
Meanwhile, SMC, in a separate disclosure, said its board also approved the filing of a shelf registration with the Securities and Exchange Commission (SEC) for P60 billion worth of short-term commercial papers. The initial issuance of commercial papers will be P15 billion, which may be oversubscribed by up to P5 billion.
Shares of the conglomerate at the stock exchange were flat on Thursday at P160 each.