March 17, 2009
Philippine brewery confirms peso bond pricing
San Miguel Brewery said on Tuesday it set a fixed interest rate of 8.875 percent for its Series B Philippine peso bonds, with a maturity of 5 years and 1 day, confirming media reports on Monday.
Reuters reported that San Miguel Brewery, the flagship of conglomerate San Miguel Corp, also said it aimed to raise 22.4 billion pesos ($463 million) from the sale of five-year bonds, or more than half its total 38.8 billion peso debt offer -- the largest domestic bond float by a Philippine private company.
The brewer also expects to raise 13.59 billion pesos from the sale of 3-year Series A bonds with an interest rate of 8.25 percent, and will sell 2.81 billion pesos worth of 10-year Series C bonds with a coupon of 10.5 percent.
The interest rates for the three tenors, offering a spread of 250 basis points over comparable government debt, were approved by the company's board of directors on Monday.
San Miguel Brewery will use proceeds from the bond sale to buy domestic beer brands and related assets from its parent.
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