The Securities and Exchange Commission approved the application of hybrid rice producer SL Agritech to issue up to P1 billion worth of short-term commercial papers.
SEC commission secretary Armando Pan Jr. said SL Agritech obtained the SEC approval after it submitted the additional financial information required by the corporate regulator.
SL Agritech said it planned to use the proceeds from the issuance of STCPs to purchase inventory, primarily palay and seeds from contract growers and to pay off some debt.
The company hired Multinational Investment Bancorporation as the sole issue manager and underwriter for the offering. The debt papers will have a terror of 365 days and will carry a discount rate equivalent to the benchmark rate plus a 200 to 300 basis point spread range for initial issuance calculated on a true-discount basis.
The STCPs have been assigned a PRS Aa rating by the Philippine Ratings Services Corp.