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Business

GT Capital finalizes pricing, issue date for P12-B bonds

Neil Jerome C. Morales - Banat

MANILA, Philippines - GT Capital Holdings Inc. has finalized the pricing and issuance date for its proposed P12-billion bond issue to  be offered to the public.

In a disclosure to the stock exchange, the George Ty-led conglomerate said the bonds, whose proceeds will support the construction of numerous residential towers in key areas in Metro Manila, will be issued simultaneously in three series.

Specifically, the five-year Series A bonds will carry a fixed interest rate of 4.7106 percent compared with the indicative range of 4.7333-5.2333 percent.

The seven-year Series B bonds will yield 5.1965 percent, which is at the midpoint of the 4.9439-5.4439 percent range; and the 10-year Series C bonds will have an interest rate of 5.6250 percent derived from the 5.1833-5.6833 percent spread.

GT Capital said it tapped the bond market “for general corporate requirements which may include, but shall not be limited to, refinancing outstanding loans; partially financing projects; and for working capital requirements.”

The fixed rate bonds will be issued on Aug. 7, it added.

GT Capital plans to allocate up to P8 billion of the net proceeds to finance several prime projects of property unit Federal Land Inc. in Metro Manila. It will be infused through an equity investment.

The conglomerate will spend between P4.2 billion to P6.2 billion to partially finance the construction of Park West, Central Park West and Madison Park West projects in Veritown Fort in Bonifacio Global City, GT Capital said.

Around P1.778 billion is earmarked to partially finance the Palm Beach Villas Boracay, and Six Senses 1, 2 and 3 in the Metropolitan Park project in Pasay City, it added.

It will also spend P390 million for working capital, of which P250 million is for the service charge to the outstanding retail bonds due August 2014 and November 2014.

GT Capital is into banking (Metropolitan Bank & Trust Co.), property (Federal Land), power generation (Global Business Power Corp.), automotive assembly and importation (Toyota Motor Philippines), life insurance (Philippine AXA Life Insurance), non-life insurance (Charter Ping An Corp.) and automotive distribution (Toyota Manila Bay Corp. and Toyota Cubao Inc.).

In the first quarter, its net income more than halved to P1.7 billion from P4 billion in the same period last year, dragged by weaker earnings from its banking and power businesses. Consolidated revenues jumped 40 percent to P31.1 billion from P22.2 billion.

 

BILLION BONIFACIO GLOBAL CITY CAPITAL CAPITAL HOLDINGS INC CENTRAL PARK WEST AND MADISON PARK WEST CHARTER PING AN CORP FEDERAL LAND FEDERAL LAND INC GEORGE TY GLOBAL BUSINESS POWER CORP METRO MANILA
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