MANILA - A wholly-owned subsidiary of Lucio Tan-led Tanduay Holdings Inc. plans to borrow P5 billion through a bond issue to fund its spending needs.
In a disclosure to the Philippine Stock Exchange, Tanduay Distillers Inc. said it would issue up to P5 billion worth of unsecured fixed-rate retail bonds, with tenor of at least 5 years.
"Proceeds from the issuance will be used for general corporate purposes, including the refinancing of debt," Tanduay Distillers said.
The company will register the bonds with the Securities and Exchange Commission.
The bonds have been given the highest rating of AAA by the Credit Rating and Investors Services Philippines Inc., indicating the issuer's strong capacity to pay.
First Metro Investment Corp. and PNB Capital and Investment Corp. were appointed joint issue managers and lead managers for Tanduay Distillers' debt issue.
Tanduay, which celebrates its 155th year anniversary this year, is the second largest producer of rum in the world.
The company operates 4 bottling plants and 2 alcohol distilleries in strategic locations in the Philippines. The plants are equipped with state-of-the-art bottling technology and wastewater treatment facilities that have been favorably cited by government regulators.