D&L Industries Inc. has received bids worth P13.8 billion for its P5- billion bond sale.
From its base offer of just P3 billion, the bid amounts to a 4.6x oversubscription.
“In light of the robust demand, D&L’s management expects the exercise of the oversubscription option of up to P2 billion. Upon full exercise of that option, the issue size will increase to P5 billion, composed of a P3 billion bond with a tenor of 3 years (Series A Bonds) and a P2 billion bond with a tenor of five years (Series B Bonds),” the company said.
The Series A bonds carry a coupon rate of 2.7885 percent for the three-year tenor. The Series B Bonds meanwhile carry a coupon rate of 3.5962 percent. Interest payments will be made quarterly in arrears.
Philippine Rating Services Corp. rated the bonds PRS Aaa with “stable outlook.”
China Bank Capital Corp. served as the sole issue manager, lead underwriter, and sole bookrunner of the milestone bond offer.
D&L will use the bond proceeds to finance the company’s expansion plans in Batangas and the corresponding working capital requirements.
