The Securities and Exchange Commission (SEC) on Thursday gave the green light to the P5-billion fixed-rate bond offering of chemical manufacturer D&L Industries Inc.
In its en banc meeting, the SEC approved D&L’s registration statement for its maiden bond offering. The company hopes to sell some P3 billion of Series A bonds due in 2024 and Series B bonds due in 2026, with an oversubscription option of up to P2 billion.
D&L expects to net up to P4.93 billion from the offer, assuming the oversubscription option is fully exercised.
The proceeds will be used to finance the expansion of the food and plastic manufacturer’s plant in Batangas, as well as for the partial repayment of bridge loans.
The bonds will be offered at face value, and will be listed and traded on the Philippine Dealing and Exchange Corp.
The offer is scheduled for September 1 to 6, with listing on the PDEX slated for September 10, according to the timetable submitted to the SEC.
D&L tapped China Bank Capital Corp. as the sole issue manager, lead underwriter and sole bookrunner for the offer.
The company earlier said its strong recovery continued in the second quarter, allowing it to post a first-half income of P1.39 billion, a 74-percent increase from the previous year’s P802 million.
Alvin Lao, the company’s president said all of its segments recorded pre-Covid income levels and that D&L is on track to hit its 2019 income of P2.62 billion.
“Our next target is to reach our income in 2018. But we can do that by next year,” Lao said.
In 2018, the company’s income reached P3.18 billion, the highest in its history. Its income then fell in the succeeding year, due mainly to the delayed passage of the national budget and the trade war between the United States and China that also affected smaller countries such as the Philippines.
“Assuming that the income for the first half holds steady for the remainder of the year, we are set to reach our 2019 income level. Moreover, we see emerging positive catalysts in the horizon such as the onset of the Christmas season, an additional spending boost coming from the 2022 election campaigns, and progress on the country’s vaccination efforts that can provide upside surprises,” Lao said.
Sales for the first half grew 37 percent to P14.9 billion from last year’s P10.17 billion. For the second quarter alone it grew 83 percent to P6.9 billion from P4.5 billion last year.
Net income for April to June more than doubled to P671 million from last year’s P287 million.