A BROWN COMPANY INC. has obtained an investment-grade credit rating for its planned maiden bond issuance of up to P5 billion, the proceeds of which are intended to fund expansion across the real estate and energy sectors.
In a disclosure on Monday, the company said that Philippine Rating Services Corp. had assigned a “PRS A plus” rating with a “stable” outlook to the proposed fixed-rate bonds, indicating strong capacity to meet financial obligations.
The base size of the planned bond offer is up to P3 billion, with an oversubscription option of up to P2 billion. The offering forms part of a P12-billion shelf registration.
The bonds will be issued in two tranches, with maturities of three and five years. The issue date and listing on the Philippine Dealing & Exchange Corp. is targeted sometime in July.
Proceeds will be used to support renewable energy investments, fund residential project development, redeem preferred shares, and for general corporate requirements.
PhilRatings cited the company’s established presence in the Mindanao property market, its ongoing expansion into Luzon and improving revenues as factors supporting the rating. It also noted A Brown’s relatively conservative capital structure and sufficient liquidity.
The company has been growing its footprint beyond property development, with investments in energy and agribusiness.
Market observers noted that the bond issuance comes as local companies increasingly turn to the domestic debt market to secure funding amid evolving financing conditions and expansion plans.
A Brown shares dropped P0.03, or 4.00 percent, to close at P0.72 each on Monday.
