D&L maiden bond offer gets strong support from investors

ABS-CBN News

Posted at Sep 03 2021 03:18 PM

MANILA— Chemicals manufacturer D&L Industries' maiden bond offering received strong support from fixed income investors as total bids reached P13.8 billion.

In a statement, the company said this is equivalent to 4.6 times the base offer size of P3 billion. 

D&L said it is expecting the exercise of the oversubscription option of up to P2 billion amid the robust demand.

Upon full exercise of that option, the issue size will increase to P5 billion, composed of a P3-billion bond with a tenor of three years and a P2-billion bond with a tenor of five years.

"We are overwhelmed with the strong support the fixed income community has shown us in our debut bond issuance. This has allowed us to price our bonds at among the lowest rates in Philippine corporate bond history," president and CEO Alvin Lao said. 

The company has said that proceeds from the bond issuance will primarily be used to finance their expansion plans in Batangas.

Local credit watcher Philippine Rating Services Corporation (PhilRatings) earlier gave the firm’s maiden bond issuance a rating of “PRS Aaa with Stable Outlook.”

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