FDC Gets SEC Approval for Php 7 Billion Fixed Rate Bonds

January 13, 2014
by Filinvest Development Corporation

Filinvest Development Corporation Gets SEC Approval for Php 7 Billion Fixed
Rate Bonds. Filinvest Development Corporation (FDC) announced that the Securities and Exchange Commission (SEC) has issued a “Certificate of Permit to Offer Securities for Sale” for its Php7 billion bonds, with an option for oversubscription of up to Php 3 billion.

FDC is offering the fixed-rate retail bonds with a term of ten years. The bonds will be issued in minimum denominations of Php50,000 each, and in integral multiples of Php10,000 thereafter. The bonds will yield an interest of 6.1458% per annum.

The offer period is from January 13 to January 17, 2014.

Issue date is on January 24, 2014. FDC is a conglomerate that is engaged in real estate, financial and banking services, hotel and restaurant management, sugar milling and refining. Most recently, it re-entered the power business.

The Philippine Rating Services Corporation (Philratings) recently assigned the highest rating of PRS Aaa to FDC’s bonds. According to Philratings, their rating reflects the following key considerations: “(1) the company’s steady earnings and diversified business portfolio; (2) maintenance of a good credit standing even in times of financial crisis; (3) strong financial flexibility; (4) established brand names and good market position of main contributing subsidiaries; (5) subsidiaries operate in growing industries which will benefit significantly from the supportive economic environment; (6) conservative and professional stance of management and (7) new investments (i.e. power) seen to significantly boost profitability in the medium-term.”

BPI Capital Corporation is the issue manager and is likewise a joint lead underwriter for the Php7 billion bonds together with BDO Capital & Investment Corporation, First Metro Investment Corporation and Standard Chartered Bank. China Bank is a co-lead underwriter and East West Banking Corporation is the selling agent.

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