A Liquid Market Continues to Attract Corporate Bond Issuances Before the Context Changes

San Miguel, the world’s leading lemon processor based in Tucumán, reopened a bond series first issued in October—during the capital amnesty period—to raise additional funds and refinance maturities at favorable rates. The company aims to raise up to USD 60 million.

Published in El Cronista Comercial, November 19, 2024

In a market characterized by high liquidity and investors seeking returns after the first phase of the capital amnesty ended, some companies are renewing their efforts to secure financing at attractive interest rates.

The possibility of changes in international financial conditions is also a motivating factor, encouraging companies to seize the current favorable window for financing as Argentina’s country risk declines.

In this context, San Miguel, the world’s largest industrial lemon processor, has reignited its funding efforts to refinance debt maturities by reopening its Series XI corporate bond issuance. Last month, this series helped the company raise USD 18 million, which, due to parity with the MEP dollar, effectively amounted to USD 20.8 million.

San Miguel clarified in a statement that these bond issuances are solely intended for refinancing existing debt and not for acquiring new debt.

The company announced to the market that it would reopen the Series XI for a bidding process set to take place on November 21.

In the previous issuance, San Miguel secured funds with a two-year bond at an annual nominal rate of 9.5%. The bond will repay the principal at the end of the term, with interest payments semi-annually for the first period and quarterly thereafter.

"We are pleased to announce the reopening of our Additional Series XI corporate bonds (MEP dollar). This issuance is certified under the MiPyME program," San Miguel stated.

Program

Led by CEO Pablo Plá, San Miguel has a bond issuance program valued at USD 250 million. For this particular issuance, the company is aiming to raise USD 10 million, extendable to USD 60 million.

The issuance is being organized by Santander and Galicia banks, with placement support from firms including Balanz Capital Valores, Puente Hnos., StoneX Securities, Cohen S.A., Mills Capital Markets S.A., Bull Market Brokers S.A., Allaria S.A., PP Inversiones S.A., Neix S.A., and Banco Supervielle S.A.

San Miguel, primarily owned by the Miguens Bemberg and Otero Monsegur families, is also partially held by the South African holding African Pioneer Group (APG) and ANSeS, which holds a stake in the company.

The company operates processing plants in Tucumán, Argentina; Paysandú, Uruguay; and South Africa.