Tycoon Ramon S. Ang’s San Miguel Corp. is repurchasing P11.24 billion worth of bonds on July 8 from holders who chose to sell their securities ahead of maturity in 2027, easing the conglomerate’s debts amid elevated interest rates.
This represents approximately one-third of the investors in SMC’s P30 billion fixed-rate six-year bonds issued in 2021, which offered an annual interest rate of 3.3832 percent.
The bond offer provided a 2024 put option, allowing holders to sell the bonds back to SMC for a payout. Such options give bondholders a measure of security, enabling them to exit the investment if needed.
The remaining bond holders will start to receive a higher interest of 7.465 percent on July 8, based on the terms, SMC said in a stock exchange filing on Thursday.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
