The Securities and Exchange Commission said Thursday it approved the P7.5-billion maiden bond offering of food producer Del Monte Philippines Inc.
The regulator gave the go-signal to DMPI’s registration statement for up to P5 billion worth of fixed-rate bonds, with an oversubscription option for another P2.5 billion.
DMPI will issue the bonds at face value, consisting of series A bonds due 2023 and series B bonds due 2025.
The bonds will be listed and traded on Philippine Dealing & Exchange Corp.
DMPI plans to use the net proceeds from the offering to repay the company’s debt, which are short-term and unsecured in nature.
BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp. and RCBC Capital Corp. were tapped as joint issue managers, joint lead underwriters and joint bookrunners for the offer.
The fixed-rate bonds were assigned a PRS Aaa rating by the Philippine Rating Service Corp. Obligations rated PRS Aaa are of the highest quality with minimal credit risk.
DMPI is the local subsidiary of Del Monte Pacific Ltd. With its 94-year track record, the company has grown to become one of the leading growers, processors and distributors of premium quality, healthy food and beverage products.
The company owns the rights to the Del Monte trademark for the Philippines for processed products.
It also holds the biggest market share in terms of packaged pineapple and mixed fruit, canned and ready-to-drink juices and tomato sauce and spaghetti sauce categories. DMPI is also into the sale of fresh fruits, largely for export.
DMPI deferred its planned P17.55-billion initial public offering in 2018 amid the volatile market conditions.