San Miguel raises $800 mln in Philippines' largest corporate bond issue

MANILA, April 19 Fri Apr 19, 2013 12:16am EDT

MANILA, April 19 (Reuters) - San Miguel Corp, the Philippines' most diversified conglomerate, has raised $800 million via a 10-year bond issue, the largest ever dollar-denominated overseas issue by a private local firm.

Demand was strong following a roadshow in Singapore and Hong Kong with a final orderbook size of more than $4.5 billion across 250 accounts, representing an oversubscription rate of 5.6 times, San Miguel said on Friday.

San Miguel priced the paper at 4.875 percent against an initial guidance of around 5.125 percent.

Asian investors accounted for 69 percent of the orderbook, followed by Europeans with 28 percent, while U.S. offshore investors took the remaining 3 percent, San Miguel said in a statement.

The company said it would use the proceeds to repay a bridge facility arranged by Deutsche Bank and Standard Chartered Bank. ANZ, Bank of America Merrill Lynch and DBS Bank Ltd.

Deutsche Bank and Standard Chartered were the bookrunners for the transaction.

The issue was San Miguel's inaugural drawdown of its newly established $2 billion medium-term note programme. The company is also trying to raise $1.3 billion from a five-year bullet term loan.

San Miguel has businesses spanning beverages, food and packaging, power generation, oil refining, mining, airline and tollroads. Its operations outside the Philippines extend to China, Vietnam, Indonesia, Malaysia, Thailand and Australia.

On Monday, it emerged as the winning bidder for a 15.5 billion Philippine peso ($376.21 million) Manila airport expressway after offering to pay the government a 70 percent premium for the building rights.

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