FDC to offer US$ bonds via Cayman SPV

Published September 4, 2020, 10:00 PM

by James A. Loyola

Filinvest Development Corporation announced that its  planned international bond offering will be made through Filinvest Development Cayman Islands (FDCI), an offshore special purpose vehicle, and will be guaranteed by FDC.

Through FDCI, the Gotianun family’s investment arm intends to offer and issue Reg-S only USD-denominated senior unsecured notes, subject to market conditions. The Notes, if issued, are expected to be unrated.

The net proceeds from the planned issuance of the Notes are intended to be used to refinance FDC’s existing indebtedness and to finance FDC’s investments in digitalization, renewable energy, water, desalination and wastewater, district cooling and other infrastructure projects. 

FDC disclosed to the Philippine Stock Exchange that it has mandated UBS AG Singapore Branch as Sole Global Coordinator, Joint Lead Manager and Joint Bookrunner and Standard Chartered Bank as Joint Lead Manager and Joint Bookrunner alongside UBS for the transaction.

The firm said earlier that it is considering to raise funds from both debt and equity to support its P25.7 billion capital expenditure program this year.

 FDC President and CEO L. Josephine G. Yap said they will continue diversification to defensive industries as the effects of the pandemic is seen to last for some time.

The company will concentrate on strengthening its recurring income base comprised of power, office and logistics leasing in property, and its new investments in renewable energy and environmentally friendly urban solutions under a build-operate-transfer business model.

“As of year-end 2019, leasing, power and sugar contributed close to half of FDC’s bottom line. The steady stream of income from these three segments, coupled with contributions from EastWest Bank, puts us in a solid position to address the forthcoming challenges posed by the COVID-19 pandemic,” said Yap.

She added that, “The business segments in the Group have been on expansion and diversification modes and it shall continue to do so in the future. We are also on the lookout for possible acquisitions. To maintain such posture, it is imperative to strike a capital structure with a careful balance of equity and debt.”