Filinvest cops P10B from hit bond sale

MANILA, Philippines  —Gotianun-led Filinvest Development Corp. (FDC) raised P10 billion from a bond sale after the offer received overwhelming demand from investors, marking the conglomerate’s successful return to the local debt market after 10 years.

The property, banking, infrastructure and food giant listed the bonds on the Philippine Dealing & Exchange Corp., led by president Antonino Nakpil. This is the first tranche of debt papers from the company’s P32-billion bond program.

The 2.5-year bonds, which will pay an annual interest rate of 6.3206 percent, were met with bids worth P31.5 billion, which was 4.5 times the base issue size of P7 billion. Strong demand prompted FDC to upsize the offer to P10 billion.

“The net proceeds from this issuance will be used to partially finance our maturing bonds redemption and capital expenditures to accelerate the growth of our businesses. This includes financing our equity investments in renewable energy and water, hospitality and digitalization projects,” Rhoda A. Huang, president and CEO of FDC, said in a statement on Wednesday.

READ: Filinvest Group embarks on a new era of resilience, growth

‘Stable investment’

FDC earlier tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp. and SB Capital Investment Corp. as joint lead underwriters and book runners for the offer.

SEC Chair Emilio Aquino said FDC’s latest issuance was positive for the issuer and the investing public.

“With these developments, we are sure to see stable investment opportunities for investors as the company expands its operations and maintains its position in the market,” Aquino said. “With this, there is no doubt in saying that FDC, as an industry leader, is certain to reach promising heights and might even surpass excellence in achieving all its goals,” he added. —MIGUEL R. CAMUS