D&L Industries Corp. looks to raise P5 billion through the sale of a three- and five-year bonds, divided into an initial P3 billion and another P2 billion, covering the over-allotment option.
The net proceeds from the offer will be used to partially finance the company’s capital expenditures, including the completion of its Batangas expansion plant; to repay bridge loans; and for general corporate purposes, the company said.
D&L tapped China Bank Capital Corp., as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.
It will be listed with the Philippine Dealing and Exchange Corp.
D&L earlier said the Batangas facility will be built for P8 billion.
Construction started in late 2018 and completion is expected by the end of the year.
“Once completed, the new plant will be instrumental to the company’s future growth, in line with plans to develop more high value-added coconut-based products and penetrate new international markets. It will mainly cater to D&L’s growing export business in the food and oleochemicals segment. It will add the capability to manufacture downstream packaging, thus allowing the company to capture a bigger part of the production chain,” the company said.
“For instance, while the company primarily sells raw materials to customers in bulk, the new plants will allow it to ‘pack at source’. This means that D&L will have the ability to process the raw materials and package them closer to finished consumer-facing products,” it added.
The company said the Batangas facility enable D&L to move a step closer to its customers “by providing customized solutions and simplifying their supply chain, which is of high importance given global logistical challenges and concerns.”
