Conglomerate Filinvest Development Corp. plans to tap the offshore debt market and conduct an equity offering to finance the expansion of core businesses and its diversification to defensive industries.
FDC president Josephine Gotianun-Yap said during the annual stockholders’ meeting via teleconference the company was exploring the possibility of issuing US-denominated bonds given the prevailing attractive offshore debt environment.
It may also revive a previous plan to issue P8 billion in retail bonds, which it deferred following the implementation of the enhanced community quarantine.
“We are considering reviving our bond offering now that the ECQ has been lifted. We are evaluating both peso or US dollar-denominated bonds given the attractive rates,” Yap said
Term and conditions of the issue and the timing and amount were delegated by the board to management.
It said the proceeds would be used, in part, to finance the capital expenditures budget of P25.7 billion for 2020. To boost shareholder value, the conglomerate is also keen on an equity offering not only to support the expansion of its subsidiaries but also unlock its untapped value.
“Providing liquidity and marketability in FDC’s shares will no doubt redound to the benefit of all its stakeholders. We are awaiting the right timing for such an offering,” Yap said. FDC’s public float is at 10.8 percent.
Meanwhile, Yap said the company would continue with diversification to defensive industries while concentrating on building its recurring income base.
“FDC will concentrate on strengthening its recurring income base comprised of power, office and logistics leasing in property, and its new investments in renewable energy and environmentally friendly urban solutions under a build-operate-transfer business model,” the company said.
FDC reported a respectable 8-percent growth in net income attributable to equity holders of the company registering P3 billion in the first quarter of 2020.
This was achieved on the back of the strong performance of banking subsidiary, EastWest Bank, with a contribution of P2.3 billion to the group’s net income resulting from lower interest rates and trading gains.
Among the group’s new ventures were joint ventures with world technology leaders like Engie Services Philippines (Engie) for solar rooftop systems and district cooling services.
FDC also teamed up with Hitachi Aqua-Tech Engineering Pte. Ltd. for development of desalination, recycled and wastewater treatment services.