Conglomerate San Miguel Corp. (SMC) said Thursday it will redeem P11.24 billion worth of bonds ahead of its 2027 maturity.

SMC said in a disclosure to the stock exchange bondholders owning P11.24 billion worth of bonds issued in July 2021 opted to avail of the put option.

The put option entitles the bondholders to sell back the bonds to the issuer ahead of maturity. The partial redemption of the bonds will help SMC settle its financial obligation ahead of interest rate re-pricing.

SMC said bondholders that did not avail of the put option would be entitled to re-priced interest rate of 7.4650 percent per annum until maturity date.

SMC issued P30 billion worth of retail bonds due 2027 in 2021 at 3.3832 percent per annum.

Aside from the put option on the third year, the Series I bonds also have optional redemption on the fourth year or the fifth year.

SMC also raised P20 billion from issuance of Series O due 2031 and Series P bonds due 2034 early this month.

The bonds were issued as second and final tranche of the company’s P50-billion bond shelf registration program approved by the Securities and Exchange Commission in June 2021.

SMC said it would use the proceeds from the fund-raising activity to invest in Ninoy Aquino International Airport (NAIA), other airport related projects in Bulacan and redemption of bonds.