CONCEPCION-LED food and beverage company RFM Corp. is raising up to P2 billion in fresh funds from the sale of debt paper to select institutional investors.

RFM plans to use the proceeds to refinance outstanding secured obligations and augment funds for capital spending, the company said in a disclosure to the Philippine Stock Exchange yesterday.

The disclosure said RFM?s board recently approved an offering of fixed or floating corporate notes with a term of five years and one day. The debt paper will be be secured by a pledge on the corporation?s existing and future assets, the disclosure said.

The board was likewise authorized to appoint financial institutions to handle the offering of corporate notes.

It was earlier announced that the company had rolled out a P1.2-billion capital spending program this year that sought to beef up its production capacity to meet rising consumer demand.

The company said it was s prioritizing expansion activities to support revenue targets with better cost structures and operating efficiencies.
RFM posted a net income of P395 million in the first six months of the year, higher by 193 percent from the profit recorded in the same period last year. It is targeting to hit a net profit of P480 million for the whole year. Doris C. Dumlao