Del Monte to start P7.5 billion bond sale
The offering will run until Oct. 23 with listing date targeted on Oct. 30, said Ed Francisco, president of BDO Capital & Investment Corp., one of the joint issue managers.
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Del Monte to start P7.5 billion bond sale
Iris Gonzales (The Philippine Star) - October 17, 2020 - 12:00am

MANILA, Philippines — Del Monte Philippines Inc. (DMPI) will commence the offer period for its P7.5 billion bond sale on Monday (Oct. 19).

The offering will run until Oct. 23 with listing date targeted on Oct. 30, said Ed Francisco, president of BDO Capital & Investment Corp., one of the joint issue managers.

The listed food company has obtained the approval of the Securities and Exchange Commission (SEC) for the issuance of the fixed-rate bonds due 2023 and 2025.

The issue comprises P5 billion worth of bonds with an oversubscription option of P2.5 billion.

The 2023 bonds fetched a rate of 3.484 percent while the 2025 bonds carried a yield of 3.75 percent.

Proceeds from the offering will be used to repay the company’s existing debt, which are short-term and unsecured in nature.

Local debt watcher Philippine Rating Services Corp. gave the bonds a PRS Aaa rating, the highest debt rating with minimal credit risk.

Aside from BDO Capital & Investment Corp., Del Monte tapped China Bank Capital Corp., First Metro Investment Corp., and RCBC Capital Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the offer.

DMPI is part of the Campos-owned Del Monte Group.

It generated a net income of $18.7 million in the first quarter.

In July, DMPI expanded into the dairy segment and successfully launched a new fruit yoghurt milk drink, Mr. Milk, across retail channels nationwide.

DEL MONTE
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