San Miguel Corp. (SMGBF) is making another big move. The Philippines industrial heavyweightwhose empire stretches from oil refineries to expresswaysis in talks with banks to raise a $1.5 billion syndicated loan, according to people familiar with the matter. The five-year deal could launch as early as Q4 and would be earmarked for general corporate use. CEO Ramon Ang confirmed the group is in active discussions, though final terms are still fluid.
If the deal proceeds, it would mark a rare foray into offshore funding for a Philippine borrower this year. Dollar lending in the country has been nearly frozen, down 26% year-to-date to just $2 billiona two-year lowlargely due to the Bangko Sentral ng Pilipinas 150 basis points in rate cuts. With peso funding now meaningfully cheaper than U.S. dollar loans, most corporates have stayed local. San Miguel, however, could be testing if offshore appetite still exists for blue-chip Filipino credit.
This wouldnt be its first global dance. Earlier this year, SMC tapped a dozen lenders for a 61.6 billion ($415 million) yen loan, and in 2024 it pulled off a $2 billion five-year raise with 35 banks in tow. If the $1.5 billion facility gets done, it may hint at thawing conditions for large-dollar Philippine issuanceeven as the rest of the market remains on pause.
