After receiving the SEC's nod, the listed firm is formally pursuing the target to raise fresh funds next month.Its offer period will run from September 1 to 6, while the issue and settlement date will be on September 10.
"We believe that it's an opportune time to tap the debt market with interest rates still remaining low. This 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," D&L Industries President and Chief Executive Officer Alvin Lao was quoted as saying in the filing.
Proceeds from the fundraising will be used to finance the expansion of D&L's production facility in Batangas, which is aimed at strengthening its export business with new international markets. The ₱8-billion facility is expected to be operational by the second quarter of 2022.—the highest credit rating—from local debt watcher Philippine Rating Services Corporation for the bond issuance.
A PRS Aaa credit rating by PhilRatings means the bonds are of the highest quality with minimal credit risk. D&L Industries' capacity to finance its obligation is also considered"extremely strong." PhilRatings also gave it a stable outlook, which means it is expected to last for the next 12 months.In a virtual briefing earlier this month, Lao said D&L was on track to return to pre-pandemic profit after its earnings jumped to ₱1.39 billion in the first semester.
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