SAN MIGUEL Corp. (SMC) said Friday that it obtained approval of the Securities and Exchange Commission for a P10 billion fixed-rate bond issue that forms part of its P60-billion shelf registration.

The permit to sell dated Sept. 19, 2019 covers the five-year Series H bonds which it it will issue on Oct. 4, 2019. The bonds, which are due in 2024, have a fixed rate of 5.55%.

The offer period will start at 9:00 a.m. on Sept. 23, 2019 and will end at 5:00 p.m. on Sept. 27, 2019, or such other date as may be mutually agreed between the company and the joint lead underwriters and bookrunners.

The bonds will list on the Philippine Dealing & Exchange Corp. on Oct. 4.

Based on its offer supplement, SMC plans to use the net proceeds of the issue either to fund the redemption of its outstanding preferred shares or for the refinancing or re-denomination of an existing loan obligation.

Part of the proceeds of the offer may be used to repay the P6,782,115,000 bridge loan that the company may avail of from BDO Unibank, Inc. to initially fund the redemption of its Series 2-B preferred shares.

Part of the proceeds may also be used to repay the P3,092,035,000 short-term loan obligations of the company with Rizal Commercial Banking Corp.

The bond offering is the fourth and final tranche to be issued from SMC’s P60-billion fixed rate bonds shelf registration. The bonds will be issued in minimum denominations of P50,000 each, and in integral multiples of P10,000. They will trade on the secondary market in P10,000 denominations.

On Friday, SMC rose 0.17% to close at P179.10. — Victor V. Saulon