• SMC to raise P15B to refinance debt

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    Conglomerate San Miguel Corp. is eyeing to raise P15 billion in the first half of the year to refinance debts owed by its infrastructure and power businesses.

    Ferdinand Constantino, SMC’s chief finance officer, on Wednesday, said the fundraising exercise could either be in the form of share sale or by issuing debt notes.

    The company also listed P30 billion worth of preferred shares valued at P75 apiece on the Philippine Stock Exchange. The proceeds would be used primarily to refinance maturing dollar-denominated obligations and for capital spending in various businesses.

    The company has proposed to raise P73 billion from selling shares at an offer price of P75 per share in the next three years.

    SMC has reported its operating profit surged by 41 percent to P78.7 billion in 2015 from a year earlier.

    Its net income, before foreign exchange translation, hit P38.2 billion, up 26 percent in the same comparable period.

    Total sales revenue, however, declined by 13 percent to P674 billion because of the steep drop in crude oil prices from $111 per barrel in 2014 to $31 per barrel toward the end of 2015.

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