The fundraising comes as the conglomerate prepares for nearly P24 billion of bond maturities in March 2027 while setting aside capital for airport projects, including its Bulacan airport development.
Investors will have from July 15 to July 23 to subscribe, with dividend rates for the three preferred share series to be announced on July 13.
Banking muscle
Bank of Commerce, BDO Capital, BPI Capital, China Bank Capital, Land Bank, Philippine Commercial Capital, PNB Capital, RCBC Capital and Security Bank Capital are handling the transaction for San Miguel, the P160 billion conglomerate behind Petron, San Miguel Food and Beverage, power plants, toll roads, airports and other major infrastructure assets.
Debt wall ahead
The offer consists of 266.7 million preferred shares, with an option to sell another 133.3 million shares if demand proves strong.
San Miguel plans to use up to P17.44 billion of the proceeds to repay Series J bonds and another P6.02 billion for Series C bonds, both due in March 2027.
The company will also refinance P6.31 billion of short-term loans used earlier this year to redeem older preferred shares.
Airport push
Beyond debt repayments, the prospectus allows up to P5 billion to be invested in airport and airport-related infrastructure projects.
The Bulacan airport remains one of San Miguel’s biggest long-term bets as the diversified conglomerate expands beyond its traditional food, beverage and fuel businesses into transport and infrastructure.
—Edited by Miguel R. Camus
