FDC to tap capital markets

Gotianun family-led conglomerate Filinvest Development Corp. (FDC) plans to return to the domestic or offshore bond market and is also considering to widen its public ownership to boost stock trading liquidity as well as funds for expansion.

Proceeds from a potential peso- or US dollar-denominated bond offering will be used, in part, to finance the capital expenditure budget of P25.7 billion set for this year.

To maintain the group’s momentum, FDC president Josephine Gotianun-Yap said during the company’s stockholders meeting on Monday that it’s important to maintain a balance between equity and debt.

“Your company, FDC, is especially keen to raise equity not only to support the expansion of its subsidiaries but also to unlock its untapped value and share it with the public,” Yap said.

At present, the public owns about 10.8 percent of FDC shares. The conglomerate – which has interests in property development, banking, sugar production and energy generation – is valued by the stock market at P70.22 billion.

“We believe that providing liquidity and marketability with FDC share will no doubt redound to the benefit of all the shareholders. We are awaiting the right timing for such an offering,” Yap said.

On the proposed foray into the debt market, Yap noted that just before Metro Manila was locked down by the government in mid-March, FDC was in the midst of an P8-billion peso-denominated bond offering. This offering was deferred due to the heightened economic uncertainties.

In April, she noted that FDC had paid off a $300-million offshore bond issued in 2013.

“We are now considering reviving our bond offering now that the ECQ (enhanced community quarantine) has been lifted,” Yap said. “We are evaluating both peso and US dollar denominated bonds given the attractive rates.”

“The business segment of the group has been on an expansion and diversification modes and we shall continue to do so in the future. We are also on the look-out for possible acquisitions,” she added.