D&L Industries has successfully listed its maiden bond offering at the Philippine Dealing and Exchange Corporation (PDEx) after being oversubscribed by both individual and institutional investors.
The firm raised ₱5 billion from the issuance of Peso-Denominated Fixed-Rate Bonds consisting of 2.7885 percent p.a. Series A Bonds with a tenor of three years due 2024 and 3.5962 percent p.a. Series B Bonds with a tenor of five years due 2026.
D&L President Alvin D. Lao said that, “For this breakthrough bond offer, we are grateful for the overwhelming support we have received... for allowing us to price our bonds at among the lowest rates in Philippine corporate bond history.”
“With the Philippine Rating Services Corporation assigning us the highest credit rating of triple-A with a Stable Outlook, and with strong demand from both retail and institutional investors, D&L will issue a base offer of ₱3 billion and will exercise the oversubscription option of ₱2 billion with tenors of 3 and 5 years,” he added.
In a disclosure to the Philippine Stock Exchange, D&L said corporate investors took up 83 percent or ₱2.49 billion of the P3 billion Series A bonds while individual investors accounted for 17 percent or ₱511 million.
For ₱2-billion Series B bonds, corporate investors cornered 84.71 percent of worth ₱1.69 billion as individuals took up 15.29 percent worth ₱305.82 million.
“For over five decades, D&L has proven that it is no stranger to crisis and will continue to solidify its standing as the leading market player with its four principal businesses – namely, Food Ingredients, Oleochemicals and Other Specialty Chemicals, Specialty Plastics and Consumer Products Original Design Manufacturing,” said Lao.
He added that, “Our ₱8-billion facility in Batangas is an embodiment of our continuous pursuit of new frontiers. The proceeds from the bond issuance will pay for our expansion, construction of which started in late 2018 and commercial operations expected to partially commence in May next year.”
Lao said “Our expansion marks our readiness to tackle demand from a growing international market for our food and oleochemicals segment and enables us to provide more customized solutions to our clients and simplify their supply chain – a feat of high importance given the present global logistical challenges and concerns.”