Phinma Corp. said Monday it extended a P1-billion term loan to its cement manufacturing unit.
Phinma said in a disclosure to the stock exchange its board approved the P1-billion loan to Philcement Corp. with a term of 1.5 years based on market rate.
Phinma will extend the credit using the proceeds from a P3-billion bond offering in 2021.
Phinma said PCC would use the money to fund expansion and improvements in its facility in Mariveles, Bataan. “This is aligned with PCC’s promise to assure Filipino consumers with reliable, high quality supply of cement products under its legacy brand, Union Cement,” Phinma said.
Phima in 2020 revived its cement business when PCC was operating its plant and port facilities in Mariveles, Bataan.
The plant had an initial annual capacity of 2 million tons and has highly automated equipment to serve the country’s growing demand for cement.
Phinma also agreed in August to invest additional P420 million in property unit Phinam Property Holdings Corp.
The additional investment will increase PPHC’s equity to support development of a township business line and will improve PPHC’s and Phinma’s earnings stream.
The investment, which will be made in 2023, will enable Phinma to increase its ownership in PPHC to 50 percent from 35 percent.
Phinma Corp. said consolidated net income fell 18.4 percent in the first half to P639.07 million from P783.56 million a year ago on higher costs.
Consolidated revenues went up by 10.14 percent in the first half to P8.63 billion from P7.83 billion in the same period last year.