Filinvest Development Corp. fully paid $300 million in maturing foreign currency obligations issued seven years ago.
Filinvest said in a statement over the weekend it retired fixed-rate seven-year bonds using the group’s excess cash coupled with a new local currency term-loan financing from local banks.
“Our continued adherence to our financial commitments is aligned with the Filinvest group’s 60-year unblemished credit track record. FDC is revisiting its plans in light of the potential economic impact of the COVID-19 pandemic,” said Filinvest president and chief executive Josephine Yap.
“We intend to take a more cautious direction and anticipate that relaxation of the quarantine may come in stages. As such, we would like to adopt a more flexible short term planning process while still mindful of our medium term strategy,” Yap added.
The US dollar-denominated fixed-rate bonds, issued on April 2, 2013, had an original issuance amount of US$300 million and with a yearly interest rate of 4.25 percent.
From the time of the bond issuance and throughout the entire tenor, the full amount of the bonds was fully hedged against foreign currency exchange risks.
In 2013, FDC redeemed US$13.5 million of the US$300-million, fixed-rate bonds at a discount, reducing the principal amount to $286.5 million.
With the dollar-denominated debt already settled, the conglomerate said deferred a planned P8-billion, fixed-rate peso bond offering.
Prior to the national government’s declaration of enhanced community quarantine over Luzon and the decision of other local government units to do the same in other parts of the country due to COVID-19, the group had planned to issue up to P8 billion in fixed rate bonds.
“The amount to be raised was supposed to be used in part to finance the aforementioned maturing US$-denominated obligation. However, in light of the significantly elevated economic uncertainty and heightened market risks brought about by COVID-19, FDC together with its underwriters and bookrunners,j ust before the start of bonds’ offering period, unanimously decided to defer the bond offering to a later date,” the company said.
Meanwhile, the conglomerate said it would continue to support the government’s thrust to help fight the new coronavirus pandemic.
Yap said the group identified areas with the higher impact for its donations. These included a P100-million donation toward providing medical equipment, including complete personal protection equipment for front liners. The group has donated 30,000 PPEs to date and distributed ventilators and PCR-based testing machines.
Filinvest also sponsored a data analytics dashboard for the use of government decision makers in conjunction with the Department of Science and Technology and Department of Health.
Filinvest City Foundation provided relief food packages to the Muntinlupa community through the local government. It opened their doors for the use of the Filinvest Tent in Alabang as a temporary quarantine center.
The Palms Country Club also offered the use of its premises to the Research Institute of Tropical Medicine frontliners, with Filinvest shouldering the food and operating expenses.
