AUB extends P900-M credit facility to sugar producerBy Doris C. Dumlao
Philippine Daily Inquirer
MANILA, Philippines—Sugar producer Roxas Holdings Inc. has tapped into a P900-million credit facility from Asia United Bank.
In a disclosure to the Philippine Stock Exchange on Friday, RHI executive chair Pedro Roxas said the lines granted by AUB, together with the group’s free cash flow, would enable the company to grow its business and improve operational efficiencies.
The credit facility consisted of omnibus lines of P450 million each to RHI subsidiaries Central Azucarera Don Pedro, Inc. (CADPI) in Batangas and Central Azucarera de la Carlota, Inc. (CACI) in Negros Occidental.
AUB president Abraham Co commended the partnership between the sugar group and the banking arm of the Rebisco group of Companies. “The credit facility that AUB granted to RHI will nurture the strong relationship between the two companies and foster more collaboration in the future as AUB supports RHI’s vision to be globally competitive,” Co said.
Apart from lending to the sugar business, AUB also opened a credit facility for the group’s property development arm. AUB granted a P200 million credit to RHI’s sister company, Roxaco Land Corporation, the property arm of Roxas & Co., Inc.
Roxas, who is also president and CEO of Roxaco, said the group would use the loan proceeds to fund expansion projects that spill over from Batangas to other key tourist destinations in the Philippines.