Hybrid rice seeds producer-SL Agritech Corp. (SLAC) has raised nearly P2 billion through another commercial paper issuance as the company gears for local and overseas expansion.
On Wednesday, Dec. 20, SLAC formally listed its P1.86 billion worth of short-term commercial papers at the country’s bond bourse, Philippine Dealing & Exchange Corp. (PDEx).
During the virtual listing ceremony, SLAC Chief Executive Officer Henry Lim Bon Liong said the issuance will “help SLAC fuel its growth”.
“With the easing of lockdown restrictions, SLAC will start to revive its expansion program for its international operation,” Lim Bon Liong said, adding that the company also plans to open new facilities for next year.
“The outcome of the May 2022 election whoever will win would give new hope and it will help propel the economy to a new height. Our fearless forecast is that we will still surpass the 2022 growth number of the government as businesses open up. Job opportunity increases in international trade, get back to its usual activity,” he further said.
SLAC's commercial paper issuance is the 22nd listing at PDEx for this year, according to PDEx President and Chief Executive Officer Antonino Nakpil.
This particular listing pushed year-to-date total debt issuance at the bond bourse to P210.45 billion, which is still lower than the P388 billion debt raised through PDEx in 2020.
"SL Agritech is now the preeminent and most prolific lister of commercial paper with enough experience in the use of this instrument to provide subject matter expertise on accessing public investor funding for working capital requirements," Nakpil said.
As of August this year, SLAC's net income was down to P64.67 million from P70.14 million in the same period last year.
Nevertheless, its revenues improved from P804.02 million to P879 million amid higher commercial rice sales and harvested seeds.
Right now, SLAC distributes hybrid seeds and milled rice in the Philippines, Bangladesh, Myanmar, Vietnam, India, Indonesia, Pakistan, Oman, Malaysia, United Arab Emirates, and United States of America.
In the Philippines per se, SLAC's top customers the Department of Agriculture (DA) and retail and distributor stores.
In December last year, SLAC also returned to the local debt market to raise P2 billion, capping this year’s listing at PDEx.
Nakpil said that SLAC’s last year issuance pushed total debt issuance at the bond bourse in 2020 to a record of P388 billion, surpassing 2019’s total listing of P375 billion.