Filinvest Development Corp. (FDC) has re-entered the international bond market with the recent issuance of $200-million fixed rate notes.
In a statement on Friday, the Gotianun family-led conglomerate said it concluded the offer of five-year senior unsecured notes, which will finance its capital expenditures and refinance maturing loans.
The bonds have a fixed coupon of 4.1250% payable semi-annually, and were priced at a re-offer yield of 4.25%.
Proceeds of the issuance will support the company’s plans for digitalization, water, desalination, waste water and renewable energy projects, a joint venture for a district cooling system, and other infrastructure projects.
“We are pleased with the outcome of the successful issuance which confirms the confidence and strength of FDC’s name and track record in the Philippines. This bond issuance will further optimize our capital structure, as well as position us to pursue new investments in infrastructure and sustainable solutions such as solar energy, water and wastewater,” FDC President and CEO Josephine Gotianun Yap said in the statement.
“The issuance allows us to diversify our funding sources, partially refinance existing debt, and gives us flexibility in managing our maturity profile,” FDC Chief Financial Officer Nelson M. Bona added.
The issuance marks FDC’s re-entry into the dollar bond market for the first time since 2013. Its coupon is also its lowest for an international bond issuance.
The company tapped UBS AG Singapore Branch as the offering’s sole global coordinator, and with Standard Chartered Bank, as joint bookrunners.
China Bank Capital Corp., Metropolitan Bank & Trust Co., PNB Capital & Investment Corp. and Union Bank of the Philippines were the domestic lead managers.
During the first half, FDC posted a 24% growth in attributable income to P7.2 billion, as its banking and sugar units remained strong through the coronavirus pandemic.
Shares in FDC at the stock exchange closed flat on Friday at P8.53 apiece. — Denise A. Valdez
