A BROWN Co., Inc. said Wednesday that it had started offering up to P5 billion worth of fixed-rate bonds after securing final regulatory approval from the Securities and Exchange Commission (SEC).
The listed property and infrastructure developer said it received an Order of Registration and a Permit to Offer Securities for Sale from the SEC on June 23.
The approval covers the initial tranche of the company's bond program, consisting of P3 billion worth of fixed-rate bonds and an oversubscription option of up to P2 billion.
The offering began on June 23 and will run until June 26, subject to any extension or early termination approved by the regulator.
The bonds are expected to be issued and listed on July 3.
The offering includes three-year Series A Bonds due in 2029 and five-year Series B Bonds due in 2031.
The Series A Bonds carry a fixed interest rate of 7.4428 percent per year, while the Series B Bonds offer a fixed rate of 7.9583 percent per year.
The initial tranche forms part of A Brown's P12-billion shelf registration program.
Earlier this month, the company disclosed that it had secured conditional approval from the SEC for the shelf registration.
A Brown said proceeds from the fundraising would be used to refinance existing obligations, redeem preferred shares, fund investments in renewable energy projects, and support general corporate requirements.
The company has been expanding its presence in renewable energy through investments in solar power projects while continuing to develop its real estate and infrastructure businesses.
A Brown’s share price was unchanged at P0.65 apiece on Wednesday.
