SEC clears A Brown’s P12-B bond program

MANILA, Philippines – Property and mining firm A Brown Company Inc. has secured regulatory clearance for its planned multiyear bond fundraising, paving the way for an initial offer of up to P5 billion.

In a statement on Wednesday, the Securities and Exchange Commission (SEC) said it had favorably considered the company’s debt securities program and rendered effective the registration statement covering the shelf registration of up to P12 billion in fixed-rate bonds.

READ: A Brown plans P12-B multiyear bond sale

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The approval remains subject to compliance with certain remaining requirements.

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Under the initial offer, the company will issue up to P3 billion in fixed-rate bonds, with an oversubscription option of up to P2 billion.

The bonds will be offered at face value and will consist of three-year Series A bonds due in 2029 and five-year Series B bonds due in 2031.

If the oversubscription option is fully exercised, A Brown expects to generate net proceeds of about P4.92 billion from the offering.

The company said the funds would be used to support renewable energy investments, finance residential projects, redeem shares and fund other general corporate purposes.

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The offer period is scheduled from June 22 to June 26, based on the latest timetable submitted to the regulator.

A Brown is targeting the issuance and listing of the bonds on the Philippine Dealing & Exchange Corp. on July 3.

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To manage the transaction, A Brown tapped PNB Capital and Investment Corp. as sole issue manager.

The investment house will also serve as joint lead underwriter and bookrunner together with Land Bank of the Philippines.

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The planned fundraising forms part of A Brown’s broader effort to raise long-term capital through the debt market, with proceeds earmarked for expansion projects and other corporate requirements. —Emmanuel John B. Abris