FILINVEST Development Corp. (FDC) has raised P10 billion in the first tranche of its P32-billion three-year bond program, the Gotianun-led conglomerate said on Wednesday.

In a filing, FDC reported raising P10 billion through 2.5-year peso fixed-rate bonds at a 6.3206% annual interest rate.

The first tranche included a P7 billion base offer and an option for oversubscription of up to P3 billion.

“We saw the success of the unwavering efforts of the joint lead underwriters and bookrunners with the offer achieving total bids of P31.5 billion, or 4.5 times oversubscription over the base issuance of P7 billion,” FDC President and Chief Executive Officer Rhoda A. Huang said during the listing ceremony in Makati City.

She said the net proceeds from the issuance will be used to partially finance our maturing bond redemption and capital expenditure, including financing for equity investments in renewable energy, water, hospitality, and digitalization projects.

“The overwhelming response to the first tranche of the P32-billion bond program with the P10-billion fixed-rate retail bond offer reflects investors’ confidence in our company’s growth and the country’s economic outlook,” Ms. Huang added.

Meanwhile, Securities and Exchange Commission Chairperson Emilio B. Aquino said that the reception to FDC’s bond issuance shows the conglomerate’s “steady earnings” across its portfolio, as well as the “strong financial flexibility and established brand names of its subsidiaries.”

“With these developments, we are sure to see stable investment opportunities for investors as the company expands its operations and maintains its position in the market,” he added.

FDC has diversified business interests encompassing property, banking services, sugar, and power, with subsidiaries including Filinvest Land, Inc., East West Banking Corp., Filinvest Hospitality Corp., FDC Utilities, Inc., and Pacific Sugar Holdings Corp.

For the first nine months of 2023, FDC’s attributable net income improved by 57% to P5.9 billion compared to P3.8 billion in 2022, as the conglomerate’s revenues rose by 26% to P64.6 billion.

On Wednesday, FDC shares closed unchanged at P5.50 apiece while Filinvest Land stocks dropped by one centavo or 1.47% to 67 centavos each. — Revin Mikhael D. Ochave