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Friday, March 29, 2024

Puregold raises P12b from issuance of notes

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Supermarket chain operator Puregold Price Club Inc. said Thursday it raised P12 billion from the issuance of fixed-rate corporate notes on strong demand from various financial institutions.

Puregold said in a disclosure to the stock exchange the landmark offering was the company’s largest capital market fundraising transaction in its 22-year history.

The corporate notes, issued on Sept. 30, were 1.3-times oversubscribed from universal banks, government financial institutions, foreign banks and an insurance company.

It said that pf the total issue size, P7 billion has a tenor of 7 years and carries an interest rate of 4 percent per annum while P5 billion has a tenor of 10 years with an interest rate of 4.513 percent per annum.

Proceeds from the fund raising activity will be used for Puregold’s growth initiatives.

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The company said that despite the pandemic, its expansion plans remained in place. It said the health crisis emphasized the need to go into locations where the company has no presence yet to provide basic goods and essential products to those markets.

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