A BROWN Company Inc. has raised P4 billion from an oversubscribed maiden fixed-rate bond offering, providing the company fresh funds for planned investments in renewable energy and real estate development as well as for debt refinancing.
In a disclosure, A Brown said the bonds were listed on the Philippine Dealing & Exchange Corp. (PDEx) on Friday, adding that the P3-billion base offer was oversubscribed, reflecting strong demand from institutional and retail investors.
The issuance, which formed part of a P12-billion shelf registration, consisted of three-year Series A bonds due 2029 with a coupon rate of 7.4428 percent and five-year Series B bonds due 2031 at 7.9583 percent.
"This P4-billion issuance marks our first entry into the Philippine bond market," said A Brown President Paul Francis Juat.
The company said net proceeds would be used to support renewable energy investments and real estate developments as well as the redemption of Series A preferred shares and other general corporate purposes.
It noted that the bonds received an investment-grade issue credit rating of PRS A plus with a stable outlook from Philippine Rating Services Corp.
PNB Capital and Investment Corp. acted as sole issue manager while PNB Capital and Land Bank of the Philippines served as joint lead underwriters and joint bookrunners.
A Brown shares on Friday jumped P0.03, or 4.35 percent, to close at P0.72 each.