Big firms defer fund-raising plans
Some of the country’s top corporations have deferred big-ticket fund-raising plans amid the financial market bloodbath and Luzon-wide lockdown triggered by the COVID-19 pandemic.
Conglomerate San Miguel Corp. announced on Friday the deferment of its application with the Securities and Exchange Commission (SEC) to raise P60 billion from an offering of commercial paper, or debt securities with maturity of up to one year.
The deferment will be “until such time that conditions stabilize, taking into consideration the COVID-19 outbreak and following the adoption by the Philippine government of enhanced community quarantine and stringent distancing measures over the entire island of Luzon,” SMC said.
The month-long lockdown of Luzon – which accounts for about 73 percent of the Philippine economy – will take effect until April 12.
The country’s largest bank, BDO Unibank, also announced the deferment of a P5-billion bond offering, likewise citing the quarantine imposed in Metro Manila and the rest of Luzon amid the COVID-19 outbreak.
“The deferral will allow potential investors to reassess their investment and liquidity needs considering the expected short-term disruption in certain business activities arising from the enhanced community quarantine,” BDO said.
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