Filinvest readies P32-B bond offering

FILINVEST Development Corp. (FDC) said on Tuesday that it had filed a registration statement with the Securities and Exchange Commission (SEC) for the offering of P32 billion in peso-denominated fixed-rate bonds.

Under its preliminary prospectus, FDC said the bonds would be issued in one or more tranches following approval by the company’s board of directors earlier this month.

Filinvest has also applied with the SEC for the issuance of the first tranche of the bond program, comprising an aggregate principal amount of up to P7 billion and an oversubscription option of up to P3 billion, it said in a statement.

The Gotianun-led holding firm said the public offer period would run from Jan. 15 to 19, 2024, while the bonds would be issued on Jan. 30, 2024.

“The offer bonds shall be issued in minimum denominations of P50,000.00 each and in integral multiples of P10,000.00 thereafter,” FDC added.

“The offer bonds shall be traded in denominations of P10,000.00 in the secondary market.”

Assuming the oversubscription option is fully exercised, FDC said it was expecting net proceeds of more than P9.87 billion.

Proceeds from the bond program will be used to partially finance the full redemption of P8.8 billion in fixed-rate bonds issued on Jan. 24, 2014.

“In the event that the oversubscription option is not fully exercised at all during the offer period, the unexercised portion shall automatically form part of the remaining bonds under shelf registration to be issued in a subsequent offering within the shelf period,” it noted.

Succeeding tranches of the bond program will be issued within three years following the effective date of the registration statement, FDC said.

BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. are the offer’s joint lead underwriters and bookrunners.

FDC shares last closed at P5.13 apiece on Monday.