Puregold eyes bond issuance of up to P12-billion for store expansion

Grocery operator Puregold Price Club, Inc. is looking to offer up to P12-billion in bonds to generate funds for its store expansion.

The company told the stock exchange on Friday that its board of directors has approved issuing corporate notes “as an opportunistic strategy to raise long term money at low interest rates.”

Puregold has not disclosed other details of the planned offering yet, except that it tapped China Bank Capital Corp. as the lead arranger and underwriter and sole bookrunner for the issuance.

The funds to be generated from the offering will be used to open more Puregold and S&R stores across the country. The company currently has 444 stores nationwide, including pizza stores.

In the midst of a coronavirus pandemic that has pulled down the income of most companies across the globe, Puregold posted growth of 20% in earnings to P3.4 billion in the first semester. Its sales jumped 15% to P83.58 billion, as people stock up their pantries when mobility was limited during the strict lockdown.

The existing 444 stores — composed of 385 Puregold stores, 20 S&R membership shopping warehouses, and 39 S&R pizza stores — currently account for around 580,000 square meters of total net selling area. The company said in May that its plan was to open 25 new Puregold stores and two new S&R stores within the year.

Shares in Puregold at the stock exchange shed P1.35 or 2.73% to P48.10 apiece on Friday. — Denise A. Valdez