Food ingredients and plastics manufacturer D&L Industries Inc. plans to raise up to P5 billion from its maiden bond offering.
D&L said in a disclosure to the stock exchange Tuesday its board of director approved the offering of between P3 billion and P5 billion worth of bonds with a tenure of 3 to 5 years.
Final details of the issuance, including interest rates, will be finalized together with the company’s underwriters.
Net proceeds from the bond issuance will primarily be used to finance the company’s expansion plans in Batangas costing P8 billion and requiring the corresponding working capital requirements.
“With interest rates still remaining low, we believe it’s an opportune time to tap the debt market. Our maiden bond offering will be a useful financial exercise for the company and will allow flexibility for future opportunities we can potentially take advantage of,” D&L president and chief executive Alvin Lao said.