SEC Approves San Miguel and Vista Land Shelf Offerings

SEC Approves San Miguel and Vista Land Shelf Offerings

In a pivotal decision, the Securities and Exchange Commission (SEC) has granted its blessing to two major corporate giants, San Miguel Corporation and Vista Land & Lifescapes, Inc., for their anticipated public offerings. The capital market landscape is set to be significantly reshaped with San Miguel and Vista Land poised to raise a combined total of P100 billion.

San Miguel Corporation, renowned for its diverse business interests, will be offering a substantial number of preferred shares. The SEC has greenlighted the registration statement for San Miguel, which covers a staggering 866,666,700 Series 2 preferred shares. This announcement comes on the back of the company’s swift registration process, taking just 33 days, a testament to the SEC’s commitment to a streamlined registration process.

For the initial tranche, San Miguel plans to offer 400,000,000 preferred shares at a price of P75 apiece, amounting to a total of P30 billion. An oversubscription option, comprising up to 266,666,700 preferred shares valued at more than P20 billion, is also in the offing. If the oversubscription option is fully exercised, San Miguel expects to net an impressive P49.62 billion from the initial tranche alone. These funds are earmarked for repaying Philippine peso-dominated short-term loan facilities, previously issued bonds, and investments in airport and airport-related projects.

Leading financial institutions, including Bank of Commerce, BDO Capital & Investment Corporation, and China Bank Capital Corporation, have been enlisted as joint issue managers for the offering, along with a consortium of joint lead underwriters and bookrunners, including Asia United Bank Corporation, BPI Capital Corporation, LandBank of the Philippines, Philippine Commercial Capital, Inc., PNB Capital and Investment Corporation, RCBC Capital Corporation, SB Capital Investment Corporation, and Union Bank of the Philippines. San Miguel’s preferred shares will be listed and traded on the main board of the Philippine Stock Exchange (PSE).

Meanwhile, Vista Land & Lifescapes, Inc., a major player in real estate development, is gearing up to offer P6 billion worth of fixed-rate bonds. This forms part of their shelf registration of a debt securities program, with an aggregate principal amount of P35 billion. The SEC’s approval has cleared the way for the issuance of Series F bonds due in 2026 and Series G bonds due in 2028. With an oversubscription option of up to P4 billion, Vista Land anticipates net proceeds of more than P9.83 billion, assuming full exercise of the oversubscription option.

The funds raised will be primarily used to finance maturing obligations and for general corporate purposes. Joint lead underwriters and bookrunners for Vista Land’s offering include China Bank Capital Corporation, SB Capital Investment Corporation, and Union Bank of the Philippines, with China Banking Corporation Trust and Asset Management Group serving as the trustees for the fixed-rate bonds. These bonds will be listed and traded at the Philippine Dealing and Exchange.

These two major offerings promise to be instrumental in the further development and expansion of San Miguel Corporation and Vista Land & Lifescapes, Inc., ultimately contributing to the growth and progress of the Philippine corporate landscape.

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