First Metro to issue P5-B bondsBy Doris C. Dumlao
Philippine Daily Inquirer
First Metro Investment Corp., the investment banking arm of the Metrobank group, plans to raise P5 billion from the offering of additional retail bonds in the second semester to fund expansion plans.
The move to issue fixed-rate corporate bonds was approved by FMIC’s board alongside a plan to infuse P1.6 billion in additional equity into Global Business Power Corp. for the expansion of its Toledo power project.
“The capital infusion is pursuant to a capital call by GBPC and represents the proportionate share based on FMIC’s current ownership of 49.11 percent,” FMIC said in a statement.
On the plan to issue retail bonds, FMIC said this might be offered in one or more tranches and the issue size could be upsized by P2 billion in case of strong demand.
The proposed retail bonds will have a tenor of five years and three months or seven years. There will be no optional redemption before the fourth year. The spread over comparative PDSTF rates is a range of 62.5 and 100 basis points.
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