D&L eyes P5B bond issue


    D&L Industries Inc. looks to raise as much as P5 billion through a bond issuance.

    D&L said the bonds will have a tenor of three to five years.

    “The proceeds from the bond issuance will primarily be used to finance the company’s expansion plans in Batangas which involves a total estimated capex of P8 billion and the corresponding working capital requirements. Construction started in late 2018 and completion is expected by the end of the year. Remaining capex to be deployed for the project is about P4 billion,” D&L said.

    “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. F

    “With interest rates still low, we believe it’s an opportune time to tap the debt market. Our maiden bond offering will be a useful financial exercise for the company and will allow flexibility for future opportunities we can potentially take advantage of,” said Alvin Lao, D&L president.

    “With earnings growing by 8 percent in the fourth quarter, which likely signifies the inflection point in earnings growth, we believe that the worst is over and we are in a very good position to further recover as the economy continues to reopen,” Lao added.

    D&L closed 2020 with profit of P2.01 billion, down 23 percent from the prior year’s P2.62 billion. Sales reached P21.74 billion, down 3 percent from P22.39 billion the prior year.