The Philippine food and drink conglomerate San Miguel Corp has agreed a loan of up to US$1.8 billion with six international banks.

It admitted to the deal after a local newspaper reported the company has launched a US$1.8 billion nine-month bridge loan at a margin of 90 basis points over three or six month Libor (London Interbank Offered Rate) for the first five months. The margin will be raised to 115 basis points thereafter.

The Manila Bulletin reported that the bank's involved are ABN Amro Holding, Barclays Capital, HSBC, Sumitomo Mitsui Banking Corp., Standard Chartered Bank, and ING Bank.

In a statement to its stock exchange, the company said: "We confirm that SMC (San Miguel Corp) has agreed with lenders to arrange financing of up to US$1.8 billion loan under the terms stated in the news article."

The money will be used to buy Australia's National Foods Ltd.