UMVA has learned that a major milestone has been achieved by A Brown Company, Inc. as the Securities and Exchange Commission (SEC) approves the shelf registration of up to P12 billion in fixed-rate bonds.
This approval paves the way for an initial offering of up to P5 billion, marking a significant step forward for the company. The SEC's commission en banc gave the green light to A Brown Company’s registration statement on June 16, pending compliance with certain requirements.
The initial tranche will consist of up to P3 billion in fixed-rate bonds, with an oversubscription option of up to P2 billion. This will include three-year bonds due in 2029 and five-year bonds due in 2031, both to be issued at face value.
A Brown Company expects to net around P4.92 billion from the initial offer, assuming the oversubscription option is fully exercised. The funds will be used to support the company's ambitious plans, including investments in renewable energy, residential projects, share redemptions, and other general corporate purposes.
The offer period is scheduled from June 23 to 27, and the bonds are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on July 3. PNB Capital and Investment Corp. will play a key role as sole issue manager, and joint lead underwriter and bookrunner with Land Bank of the Philippines.
A Brown Company is a diversified firm with a strong presence in real estate development, renewable energy, palm oil processing, electron-beam services, and water supply. The company's shares declined 5.33% to P0.71 each on Wednesday, reflecting the market's close attention to this development.
