JG SUMMIT Holdings, Inc. redeemed its 10-year fixed rate bonds due in 2024 for an early redemption price of 101.5% of its principal price, including accrued interest.
The company reported to the exchange that it had “fully redeemed” the bonds amounting to P126.34 million.
“We have chosen to exercise our option for early redemption as a matter of prudential exercise in capital management considering current market interest rate conditions,” a JG Summit source told BusinessWorld in a Viber message on Wednesday.
The Gokongwei-led holding firm disclosed in January its plan to redeem the bonds early.
“We hereby give notice of our intention to exercise our option for early redemption on the seventh anniversary of the issue date of the bonds, at the early redemption price of 101.5%,” the company said in a statement.
The seventh anniversary of the issue date, Feb. 27, fell on a Saturday this year. The bonds’ redemption date was moved to the next business day instead, March 1.
The bonds were part of the P30-billion fixed rate bonds JG Summit issued in 2014, which was then said to be the “largest listing of the year.”
The company previously said funds from the bond issuance would finance its acquisition of shares from Manila Electric Co. and for general corporate purposes. — Keren Concepcion G. Valmonte
