Conglomerate Filinvest Development Corp. (FDC) said it plans to issue P10 billion worth of fixed-rate bonds in January 2024.
Based on preliminary prospects filed with the Securities and Exchange Commission (SEC), FDC will offer up to P7 worth of fixed-rate bonds with an oversubscription option for another P3 billion.
The bonds will be issued as the first tranche from FDC’s P32-billion bond shelf registration program, which is still subject to the approval of the Securities and Exchange Commission.
The first tranche will have a maturity period of 2.5 years.
FDC said it would use the net proceeds from the fund-raising activity to finance the full redemption of the company’s P8.8-billion fixed-rate bonds maturing in January 2024.
It also allotted P1.87 billion of the proceeds to fund power and utility operations, primarily for its renewable energy and water projects, while P726 million would be set aside for its hospitality business.
FDC allocated P396 million for digitalization, water and waste water projects.
Offer period will be from Jan. 15 to 17, 2024, while issue date will be on Jan. 30, 2024.
FDC chalked up a net income of P5.9 billion in the first nine months of 2023, up 57 percent from P3.8 billion in the same period a year ago on continued recovery of of business units.
Nine-month consolidated revenues also jumped 26.3 percent to P64.6 billion, surpassing pre-pandemic revenues of P63 billion posted in 2019.