San Miguel Brewery (SMB) bonds in the Philippines
March 17, 2009
In what is touted as the biggest corporate bond issue in the Philippines, beer company San Miguel Brewery, Inc. (SMB) successfully raised P38.8 billion or US$800 million during this week’s sale of its fixed-rate bonds.
SMB offered three types of bonds to the market:
- 3-year bonds, paying interest coupon of 8.25% per annum
- 5-year bonds, paying interest coupon of 8.875% per annum
- 10-year bonds, paying interest coupon of 10.5% per annum
If you want to invest in these SMB Bonds, inquire with your bank, specifically the bank’s Trust Department or Trust Group.
Related discussion:
- San Miguel’s woes; investors beware
- Commercial papers offered by banks
- All about Bonds and other Corporate & Government Securities
Other Investment Products in the past:
- Ayala Corporation (AC)’s Preferred Shares
- Manila Water (MWC)’s 8.25% bonds
- Metrobank’s LTNCDs
- Pag-IBIG’s 5% Housing Bonds
- Philippine Government’s Retail Treasury Bonds
March 17th, 2009 at %I:%M %p
is it a good idea to invest in bonds given the current economic crisis? nakakatakot… pero di naman siguro babagsak ang isang dambuhalang companya kagaya ng SMB….
the earning student
March 17th, 2009 at %I:%M %p
Hopefully prices for the bonds have gone down already. Last month, BDO told me the minimum was P1M! Any news on what the minimum bond rates are right now?
March 17th, 2009 at %I:%M %p
Selling bonds is definitely one way raising capital of a company.
March 18th, 2009 at %I:%M %p
@ice_hot, actually during times of recession, people flock to bonds rather than stocks. You just have to check the issuer of the bond, whether they have a good reputation or not and the bond’s credit rating. Although as we have seen recently, credit ratings are not always 100% correct so aside from looking at the credit rating, make your own analysis as well.
@Reel Advice, bond rates differ depending on the type. You just have to constantly watch out for bond offerings and look for the ones that are good investments.