San Miguel bond offer to fund airport projects
RAMON Ang-led San Miguel Corp. (SMC) said Tuesday it would use the proceeds of a P20-billion bond offer to support its airport development projects, including the P171-billion modernization of the country’s main international gateway.
In a disclosure, SMC said it had filed an amended registration statement and preliminary offer supplement for its planned issuance of fixed-rate bonds with the Securities and Exchange Commission.
The fundraising involves a base offer of P15 billion and an oversubscription option of up to P5 billion, to be taken from the remainder of SMC’s P50-billion pesodenominated shelf-registered bonds.
Based on an offer supplement dated April 22, SMC expects to raise approximately P19.7 billion from the issuance, assuming full exercise of the oversubscription option.
Proceeds will be used for the rehabilitation and upgrade of the Ninoy Aquino International Airport (NAIA) and construction of a new airport in Bulacan, as well as the redemption and repayment of the company’s Series I and F bonds, respectively.
An SMC-led consortium that also includes RMM Asian Logistics Inc., RLW Aviation Development Inc. and South Korea’s Incheon International Airport Corp. won a 15-year contract to rehabilitate and operate NAIA, with the possibility of a 10-year extension.
Apart from the NAIA rehab project, the conglomerate is also set to develop the P740-billion New Manila International Airport in Bulacan, which is intended to help decongest NAIA.
Asia United Bank Corp., Bank of Commerce (BankCom), BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. were tapped as the joint lead underwriters and bookrunners for the planned offering.
BankCom, BDO Capital and China Bank Capital acted as joint issue managers.
On Tuesday, SMC shares were unchanged at P104.40 each amid a 0.97-percent upturn for the benchmark Philippine Stock Exchange index.