MANILA, Philippines - San Miguel Brewery Inc. (SMB) filed yesterday with securities regulators its registration statement covering the sale of P20 billion worth of five- to 10-year bonds.
SMB said proceeds from the issuance will be used to refinance the first tranche of fixed-rate bonds issued in 2009 and prepay a $300-million term facility. The first tranche, amounting to P13.6 billion, will mature on April 3, 2012.
ING Bank NV is the issue manager while BDO Capital & Investment, HSBC, SB Capital and Standard Chartered Bank are the joint underwriters.
The new bonds have a minimum term of five years and a maximum term of 10 years.
Parent firm San Miguel Corp. owns 51 percent of SMB while Japanese brewer Kirin Holdings holds 48.4 percent.
SMB is building breweries in Laos and Cambodia, each with a capacity of about 500,000 hectoliters, as part of its ongoing expansion program.
On the domestic front, the company plans to put up four bottling plants in Laguna, Isabela, Bicol and Cagayan de Oro, worth around $100 million. These plants are seen to boost the company’s bottling capacity by 30 percent.
SMB accounts for 96 percent of the Philippine beer market, which is expected to continue to grow in the low single-digit levels given robust consumer spending.