Lured by low rates, FDC to issue bonds abroad | Inquirer Business

Lured by low rates, FDC to issue bonds abroad

By: - Business Features Editor / @philbizwatcher
/ 04:38 AM September 05, 2020

Gotianun group-led conglomerate Filinvest Development Corp. (FDC) has firmed up plans to tap the offshore bond market, taking advantage of record-low global interest rates to lock in long-term funding.

In a disclosure to the Philippine Stock Exchange on Friday, FDC said it had mandated UBS AG Singapore as sole global coordinator, joint lead manager and joint bookrunner for this issuance.

Standard Chartered Bank was appointed joint lead manager and joint bookrunner.


The planned international bond offering will be made through Filinvest Development Cayman Islands (FDCI), an offshore special purpose vehicle, and will be guaranteed by FDC.


FDCI intends to offer and issue Regulation-S (Reg S) only US dollar-denominated senior unsecured notes subject to market conditions. A reg S offering means the issuance, which is made outside the United States, is exempted from registration requirements in America.

“The net proceeds from the planned issuance of the Notes are intended to be used to refinance FDC’s existing indebtedness and to finance FDC’s investments in digitalization, renewable energy, water, desalination and wastewater, district cooling and other infrastructure projects,” FDC said.

FDC grew its first semester net profit by 24 percent year-on-year to P7.2 billion as its banking and sugar businesses made up for the slump in real estate development, hotel and power businesses during the coronavirus pandemic.

For the second quarter alone, FDC’s net profit went up by 38.9 percent year-on-year to P4.21 billion.

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TAGS: FDC, Filinvest Development Corp.

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