San Miguel Corp.’s preferred share sale has been swamped by investors, prompting the conglomerate to raise Php 30 billion. This amount is from the issuance of high-yielding securities. The dividend rates of five-year preferred shares are set at 6.5793%. The seven and ten-year tenors are at 6.3222% and 6.3355%, respectively.
The proceeds will be used to cut its US dollar-denominated debt. Other reasons will include the financing of investments in existing businesses, as well as for various other corporate purposes. SMC’s aggressive diversification program started in 2007 and saw the conglomerate make a series of acquisitions in sectors such as energy, infrastructure, and banking.
