D&L sets P5-B debut in bond market
Specialty plastic and food input manufacturer D&L Industries has firmed up its maiden bond offering of as much as P5 billion as a means to finally completing its “next-generation” factory expansion program in Batangas.
D&L has submitted to the Securities and Exchange Commission a registration statement to offer to the public a minimum of P3 billion peso-denominated bonds with tenors of three and five years. In case of strong demand, the offering can be increased by P2 billion.
The inaugural bonds will be listed and traded on local fixed income platform, Philippine Dealing & Exchange Corp. (PDEx).
Based on its regulatory filing, D&L has mandated Chinabank Capital as the sole issue manager, lead underwriter and sole bookrunner.
The bonds will be issued in minimum denominations of P50,000 each, and in multiples of P10,000 thereafter. They can be traded in denominations of P10,000 in the secondary market.
Net proceeds will be used to partially finance capital expenditures, repay bridge loans and interest costs earlier drawn to fund capital expenditures alongside other general corporate purposes.
Specifically, D&L intends to expand its manufacturing capacity through a new facility now being built on a 26-hectare property in First Industrial Township-Special Economic Zone in Batangas. Construction of the new facility started in late 2018.
“Once completed, the new plant will be instrumental to the company’s future growth, in line with plans to develop more high value-added coconut-based products and penetrate new international markets,” D&L’s prospectus said.
The new facility will mainly cater to D&L’s growing export business in the food and oleochemicals segment. It will allow the company to capture a bigger part of the production chain. —DORIS DUMLAO-ABADILLA INQ
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