MANILA - Del Monte Philippines Inc (DMPI) on Wednesday said it raised P6.47 billion in its first bond issuance, and intends to list the securities on the Philippine Dealing & Exchange Corporation on Oct. 30.
“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,” said Joselito Campos Jr, company President and CEO.
Del Monte said the bond issuance was 1.29x oversubscribed, and was well-received by retail and institutional investors that include insurance companies, retirement funds and asset management groups.
While many businesses have been affected by the COVID-19 outbreak and the community quarantine, Filipinos continue to spend on food, according to local ratings firm PhilRatings.
DMPI said it generated sales of P7.4 billion in the first quarter ending July, with domestic sales comprising about two-thirds and the balance from the international market.
Del Monte said proceeds from the bonds will be used to refinance and term out existing short-term loans and convert them into long-term liabilities.