By James A. Loyola
Filinvest Development Corporation (FDC) has fully paid its maturing foreign currency obligation amounting to US$300 million.
The firm said it has retired its fixed-rate seven-year bonds using the Filinvest group’s excess cash coupled with new local currency term-loan financing from local banks.
The US$-denominated fixed-rate seven-year bonds, issued on April 2, 2013, had an original issuance amount of $300 million with an interest rate of 4.25 percent per annum.
From the time of the bond issuance and throughout its entire tenor, the full amount of the bonds was fully hedged against foreign currency exchange risks.
In 2013, FDC redeemed $13.5 million of the US$300 million fixed rate bonds at a discount, reducing the principal amount to $286.5 million. FDC President and CEO L. Josephine G. Yap said “Our continued adherence to our financial commitments is aligned with the Filinvest group’s 60-year unblemished credit track record.”
She added that, “FDC is revisiting its plans in light of the potential economic impact of the COVID-19 pandemic. We intend to take a more cautious direction and anticipate that relaxation of the quarantine may come in stages. As such, we would like to adopt a more flexible short term planning process while still mindful of our medium term strategy.”