Del Monte PH raises P6.47B

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    Del Monte Philippines Inc. (DMPI) raised P6.47 billion through the issuance of three- and five-year bonds which it will use to refinance and term out existing short-term loans and convert them into long-term liabilities.

    The bonds carry a coupon of 3.4840 percent for the three-years tenor bonds and 3.7563 percent for the five-year bonds.

    The bonds were “well-received by a good mix of retail and institutional investors that include insurance companies, retirement funds and asset management groups,” said its underwriters, resulting in a 1.29x oversubscription.

    PhilRatings assigned the DMPI bonds with a rating of PRS Aaa, its highest issue credit rating, with a “stable” outlook. Obligations rated PRS Aaa indicate minimal credit risk, with the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

    While various businesses have been affected by the coronavirus outbreak and the prevailing community quarantine, Filipino families continue to spend a significant amount of their income on food.