San Miguel Corporation receives USD 50 M in financing from Export Development Canada

By MARKETWIRE
September 24, 2014

OTTAWA, Ontario – Export Development Canada (EDC) today announced a previously signed USD 50 M financing transaction for Philippines-based San Miguel Corporation (SMC), a well-diversified conglomerate with leading market positions in the food, beverage, and packaging industry in the Philippines and Southeast Asia. In recent years, SMC has also become a market leader in fuel, oil, and energy in the Philippines.

As a mature global financier, EDC brings stability and reliability of capital to international customers like SMC. With annual business volumes nearing CAD 100 B, EDC has the capital and experience necessary to undertake transactions of any size in support of deals involving Canadian supply or services.

"At EDC we are flexible in terms of the financing solutions we can provide to international companies," said Rajesh Sharma, EDC's Regional Manager for Southeast Asia who is based in Singapore. "We are always willing to tailor deals to meet the specific needs of customers, whether that means working alongside existing financial partners or acting as the sole financier. In addition to reliable capital, EDC brings valuable market intelligence and supply-chain matchmaking ability to the table."

SMC's total revenues of nearly USD 17 B in 2013 accounted for approximately 6.5 per cent of the Philippines' overall GDP. Last year, the company confirmed medium and long term investment plans for an estimated USD 35 B within its current business portfolio, making them the largest investor in the Philippines. SMC was also recently awarded one of seven Philippine government contracts under the Public-Private Partnerships program. The contract, valued at USD 541 M, is for the NAIA Expressway project. There are several more infrastructure projects in SMC's pipeline as well.

SMC will use EDC's financing to fuel this growth, but the loan will also serve to strengthen the business relationship between EDC and the Philippine conglomerate. As part of this relationship, EDC will be able to help connect SMC with Canadian suppliers in the oil, energy, infrastructure, mining, and telecommunications sectors – all areas where SMC's procurement needs match up well with Canadian expertise.

"We actively work with global partners in our fast expanding businesses. Our relationship with EDC is a fairly new one and we hope they will be able to connect us with Canadian expertise and partners as we expand our operations in the region" said Sergio Edeza, SMC's Senior Vice President and Head of Treasury."