Del Monte Philippines raises P6.5 billion from bond sale

MANILA, Philippines — Del Monte Philippines Inc. (DMPI) successfully raised P6.47 billion from the sale of fixed rate bonds.

During yesterday’s virtual listing ceremony, DMPI president and CEO Joselito Campos Jr. said the company, now 94 years old, remains strong.

“We remain one of the best, if not the best pineapple plantation in the world,” Campos said.

Proceeds of the fixed-rate bonds will be used to refinance existing short-term loans and convert them into long-term liabilities.

The offering, which marked DMPI’s maiden bond issuance, reflects strong investor confidence in the company.

“The success of the bond offering reflects the investing public’s confidence and optimism in DMPI’s strong fundamentals and long-term prospects as well as the company’s financial strength and capability to meet our financial obligations,” Campos said.

The offer consisted of three-year bonds with an interest rate of 3.484 percent and five-year bonds with an interest rate of 3.7563 percent.

The deal, which was 1.29 times oversubscribed, was well-received by a good mix of retail and institutional investors that include insurance companies, retirement funds and asset management groups, among others.

Philippine Rating Services Corp. assigned the DMPI bonds with its highest issue credit rating of PRS Aaa, with a stable outlook.

This means that the issue has minimal credit risk. Obligations rated PRS Aaa are of the highest quality, with strong capacity on the part of the issuer to meet its financial commitment.