Filinvest Development Corp., the holding company of the Gotianun family, said it raised $200 million from the sale of overseas bonds.
FDC said in a disclosure to the stock exchange the $200-million US dollar-denominated Reg-S 5-year senior unsecured notes were priced at a yield of 4.25 percent or 25 basis points tighter than the initial price guidance.
This represents the lowest coupon ever for FDC in the international bond markets. The bonds offering also marked the return of FDC in the offshore debt market after seven years.
“We are pleased with the outcome of the successful issuance which confirms the confidence and strength of FDC’s name and track record in the Philippines. This bond issuance will further optimize our capital structure, as well as position us to pursue new investments in infrastructure and sustainable solutions such as solar energy, water and waste water,” said FDC president and chief executive Josephine Gotianun Yap.
The company said the net proceeds from the fund-raising activity would be used to finance capital expenditure in digitalization, water, desalination, waste water and renewable energy projects, the district cooling system joint venture and other infrastructure projects. It will also refinance maturing loans and general corporate purposes.
FDC said the bond offering would enable it to diversify funding sources, partially refinance existing debt and provide flexibility in managing its maturity profile.
“The issuance allows us to diversify our funding sources, partially refinance existing debt and gives us flexibility in managing our maturity profile,” said FDC chief financial officer Nelson Bona.
“The tremendous market response to our bond offering is beyond what we expected after such a long absence. This overwhelming support only serves to validate FDC’s record of resiliency and financial discipline over the years,” FDC chairman Jonathan Gotianun said.
FDC tapped UBS AG Singapore Branch as the sole global coordinator and UBS AG Singapore Branch and Standard Chartered Bank as the joint bookrunners. China Bank Capital, Metropolitan Bank & Trust Company, Philippine National Bank Capital and Union Bank of the Philippines acted as the domestic lead managers for the transaction.
FDC recently teamed up world technology leaders like Engie Services Philippines (Engie) for solar rooftop systems and district cooling services.
It also signed a joint venture with Hitachi Aqua-Tech Engineering Pte. Ltd. for the development of desalination, recycled and wastewater treatment services.