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Friday, March 29, 2024

Primex prepays P1.8b in bank debt

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Property developer Primex Corp. said it prepaid all its bank obligations worth P1.8 billion, ahead of the expected rise in interest rates.

Primex said in a disclosure to the stock exchange it was able to prepay all obligations with Metrobank and BDO Unibank Inc. as of Jan. 3, 2017.

The early settlement of the bank loans is expected to bolster the company’s financial standing in the domestic lending market, it said. This could also result in banks’ higher trust and confidence in the group, resulting in lower lending rates and increased allocation of funding.

Primex had an approved loan with Metrobank amounting to P300 million which was due to mature in April 2020 while subsidiary Primex Realty Corp., the owner and developer of a 31-story residential tower in Salcedo Village Makati, also prepaid both its term loan with Metrobank amounting to P700 Million and another P500 million loan with BDO. 

The Metrobank loan that matured on July 6, 2016 was fully paid three months ahead of schedule, while the BDO loan that would mature in 2020 was fully settled before the year 2016 ended. 

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Primex said affiliate Primex Land Inc. was also able to wipe out all its bank obligations of P300 million, five months ahead of maturity. 

“Eliminating our already low debt levels help make Primex a fundamentally stronger company especially at a time when the market is expecting a rise in interest rates. Additionally, our debt-to-equity levels should now be among the healthiest and lowest among the most valuable 20 listed property developers in the country,” Primex chairman Ernesto Ang said.

Ang said the company was able to achieve record profitability supported by steady and robust cash flows coming from foreign and institutional investors.

“Our current financial position even allows us to pay dividends to shareholders which we are planning for 2017, on top of our acquisition and upcoming development projects”Ang said.

Primex said it was currently formulating a dividend policy in view of the steady improvement in the company’s financial performance and for the benefit of their stockholders who supported the company.

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