Metro Manila (CNN Philippines, July 18) — Food and chemical products manufacturer D&L Industries has received the highest credit rating from a local debt watcher for its planned ₱5-billion bond issuance.
In a statement over the weekend, the publicly listed company said its maiden bond issuance had been given a PRS Aaa credit rating by the Philippine Rating Services Corporation (PhilRatings).
In March, D&L Industries bared its target to issue a minimum of ₱3 billion denominated bonds. If the offering witnesses a strong demand, the firm said it may increase it by ₱2 billion.
READ: Listed D&L targets ₱5B from maiden bond issuance
Last month, the company filed with the Securities and Exchange Commission a registration statement for the said offer.
A PRS Aaa credit rating by PhilRatings means the bonds are of 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.
The company earlier said proceeds from the bond offering will be used to prop up the expansion of its production facility in Batangas, as it aims to enter new foreign markets.
“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 a disclosure dated March 16.
Its net income in the first quarter rose to ₱695 million from ₱515 million in the same period last year, as its businesses saw “significant recovery.” The company’s sales also increased by 23% to ₱7 billion from last year’s ₱5.67 billion.
