E-Malt.com News article: The Philippines: San Miguel Brewery to complete P20-bln bond sale by the end of March

San Miguel Brewery Inc. (SMB), the beer subsidiary of diversified conglomerate San Miguel Corp., is targeting to complete its proposed P20-billion bond sale by the end of next month, a deal arranger said following a briefing with bankers held on February, 10.

Eduardo Francisco, president of BDO Capital and Investment Corp., said they are expecting a positive reception for the debt issuance, which comes three years after SMB raised P38.8 billion in a landmark bond offering, Business Mirror reports.

“The tentative issue date is March 30,” Francisco said in a text message, noting that pricing for the bonds has “yet to be determined.”

SMB last week filed an initial prospectus with the Securities and Exchange Commission to sell P20 billion worth of five-, seven- and 10-year tenors.

BDO Capital is one of five banks hired by SMB to help sell the debt papers. It tapped ING Bank N.V. to act as issue manager and joint lead manager while bookrunners include BDO Capital, HSBC Corp., SB Capital Investment Corp., and Standard Chartered Bank.
The brewer said in the prospectus that bond proceeds would refinance P13.6 billion worth in debt coming due in April 2012.It also plans to prepay part of a $300-million term facility ahead of schedule as these are set to mature on February 2015.

SMB, considered the Philippines’ largest brewer with a market share of over 90 percent, is owned by San Miguel Corp. and Japan’s Kirin Holdings. Its brands include San Miguel Pale Pilsen, Red Horse Beer, Cerveza Negra and Gold Eagle Beer.

SMB last week said its net income for 2011 grew 17.4 percent to P12.2 billion. Consolidated sales rose 6.3 percent to P71.9 billion, with a fifth of that amount coming from international operations.


15 February, 2012