Filinvest Development Corporation, the flagship of the Gotianun group, has raised $200 million from the a US dollar-denominated Reg-S 5-year Senior Unsecured Notes issuance.
In a disclosure to the Philippine Stock Exchange, the firm reported that it has successfully priced the issue with a fixed coupon of 4.1250 percent payable semi-annually. This represents FDC's first US dollar-denominated bond issuance since 2013.
The Notes were priced at a re-offer yield of 4.25 percent which was 25 basis points tighter than initial price guidance. This represents the lowest coupon ever for FDC in the international bond markets.
"We are pleased with the outcome of the successful issuance which confirms the confidence and strength of FDC's name and track record in the Philippines," said FDC President and CEO Josephine Gotianun Yap.
She noted that, “This bond issuance will further optimize our capital structure, as well as position us to pursue new investments in infrastructure and sustainable solutions such as solar energy, water and waste water.”
“The tremendous market response to our bond offering is beyond what we expected after such a long absence. This overwhelming support only serves to validate FDC’s record of resiliency and financial discipline over the years,” added FDC Chairman Jonathan T. Gotianun.
Upon issuance, the net proceeds from the issue of the Notes will be used to finance capital expenditure in digitalization, water, desalination, waste water and renewable energy projects, the district cooling system joint venture, other infrastructure projects, and to refinance some maturing loans as well as for general corporate purposes.
"The issuance allows us to diversify our funding sources, partially refinance existing debt, and gives us flexibility in managing our maturity profile," said FDC Chief Financial Officer Nelson M. Bona. UBS AG Singapore Branch was the Sole Global Coordinator, and UBS AG Singapore Branch and Standard Chartered Bank were the Joint Bookrunners. China Bank Capital, Metropolitan Bank & Trust Company, Philippine National Bank Capital and Union Bank of the Philippines acted as the Domestic Lead Managers for thetransaction.