Diversified conglomerate San Miguel Corp. (SMC) is seeking the approval of the Securities and Exchange Commission (SEC) to issue P20-billion fixed-rate bonds to raise funds for its airport developments.

In a regulatory filing on Tuesday, SMC said it submitted an Amended Registration Statement and Preliminary Offer Supplement to the SEC on Monday.

The company's issuance, which is part of the second tranche of its bond program, will have a principal amount of P15 billion and an oversubscription of up to P5 billion.

According to SMC, the base offer alone is expected to raise around P14.8 billion after the company's expenses have been deducted.

Once oversubscribed, the proceeds could reach as much as P19.74 billion.

In 2021, SMC raised P30 billion from the first tranche of its SEC-approved P50-billion shelf program.

SMC, in partnership with Rmm Asian Logistics, Inc., Rlw Aviation Development Inc., and Incheon International Airport Corp., the developer of the world-class South Korean air hub, won the P170-billion modernization of the Ninoy Aquino International Airport (NAIA).

SMC-SAP & Co., renamed as New NAIA Infrastructure Corp., will operate, maintain, and rehabilitate NAIA.

Depending on its performance, it has an option to extend the 15-year deal for another 10 years.

The consortium will rehabilitate and upgrade the passenger terminals, commercial assets, and surface access facilities, and modernize the communications, navigation, and surveillance systems of the airport.

Once these are realized, the overall passenger experience in the NAIA is expected to improve, while the annual passenger capacity of NAIA is likely to expand by at least 62 million from the current 32 million.

The turnover of operatorship to the private sector will take place in September, provided the original timeline is followed.

Aside from NAIA, SMC, through San Miguel Aerocity Inc., was awarded the contract to develop, construct, operate, and maintain the New Manila International Airport (NMIA) in the province of Bulacan.

NMIA will be developed in phases, with an initial capacity of 35 million passengers annually, and a target of 100 million passengers per year, once fully complete.

SMC has an infrastructure arm that handles the construction, management, and operation of the country's largest infrastructure network.

Its current portfolio includes the Tarlac-Pangasinan-La Union Expressway, the Southern Tagalog Arterial Road, the South Luzon Expressway, the Skyway System, the NAIA Expressway, Boracay Airport, the MRT-7 rail and road project, and the Bulacan Bulk Water Supply Project.