ANI plans 75-M euro green bonds issue

Published October 14, 2020, 6:00 AM

by James A. Loyola

Agrinurture Inc. (ANI), the listed agriculture company of businessman Antonio Tiu, is planning to raise up to EUR 75 million (P4.29 billion) through the issuance of long term Green Bonds and commercial papers.

In a disclosure to the Philippine Stock Exchange, the firms aid its Board of Directors has approved the plan to issue Green Bonds with a maturity of up to seven years, including the issuance of commercial papers.

“The issuance shall fund the agricultural project expansion of the Company geared towards climate change adaptation and minimized environmental footprint,” Agrinurture said.

 Tiu noted that the firm continues to expand its operations since “Agriculture is a pandemic-resilient industry.”

The firm’s Board has also approved the 150 percent increase in its authorized capital stock to P5 billion from P2 billion. Classification of shares, whether Common or Preferred, relative to the increase shall be determined by the Board.

Meanwhile, ANI is also sweetening its long planned stock rights offering by issuing warrants at the rate of one warrant for every three stock rights shares. The ratio shall be one warrant equivalent to one underlying common share upon conversion.

The warrants shall have the exercise price of a discounted rate of 5 percent of the weighted average volume of trade 15 days prior to maturity, to be exercised after five years from date of listing. 

ANI reported a 404 surge in net attributable income to P357 million in the first half of 2020 from the P70.7 million earned in the same period last year.

The firm said that, in the second quarter alone, the consumer staple company’s net income grew to P325.3 million from P25.7 million last year.

ANI is one of the country’s top produce exporters to the world. It supplies home-grown fruits like mango, banana, pineapple and coconut products to global institutional buyers and supermarket chains.

While overall sales declined due to the negative impact of COVID-19 on the global supply chain, ANI’s recurring income continues to post hefty growth due to robust domestic sales across supermarket chains in the Philippines and in the US mainland.

Meanwhile, other income increased by P281.25 million as a result of an increase in brand valuation for its subsidiary “The Big Chill, Inc.” which recently launched its plant based ice cream line and is currently working on a potential listing in a major foreign exchange.

A 14 percent reduction in company’s liabilities in addition to BSP rate cuts led to significant interest savings. Unrealized foreign exchange gains and rental income during the period also boosted other income.