Metro Manila (CNN Philippines, March 16) — D&L Industries, a plastic and food input producer listed on the Philippine Stock Exchange, is aiming to borrow up to ₱5 billion through a bond issuance to finance the expansion of its production facility in Batangas to be able to export to new international markets.
In a disclosure filed with the stock exchange on Tuesday, the firm said its board of directors gave the go signal for a maiden bond offering this 2021, targeting to issue ₱3 billion to ₱5 billion of bonds with a tenure of three to five years.
Final details of the issuance are still being finalized, the company said.
“With interest rates still remaining 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,” D&L Industries president and chief executive officer Alvin Lao was quoted as saying in the filing.
Proceeds will be allotted for its expansion project in Tanauan, Batangas. Construction works started in late 2018, it said, adding that the facility may be completed by end-2021.
Lao previously said the ₱8-billion facility will more than double D&L’s capacity, allowing the group to boost its presence in the world export market.
“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,” D&L said.
Its profit last year fell by 23% to ₱2.01 billion from the ₱2.62 billion posted in 2019 as the food sector felt the impact of the lockdown.
The price of D&L stock went up 2.11% or 15 centavos to finish at ₱7.25 on Tuesday.
