The approval was subject to the 10-percent liquidity reserve requirement of the trust fund equity.
The SEC has also required ING Bank to file a notice of exemption from the registration of securities as it noted that the guarantor of the bonds, JG Summit, has strong financial performance for the past three years.
JG Summit is one of the largest and most diversified conglomerates in the Philippines with a range of businesses spanning food, agri-products, shopping malls, telecommunications, petrochemicals, airlines, textiles and a small thrift bank.
The group holds leading positions in industries it operates through its subsidiaries.
Last month, JGSH issued $300 million worth of five-year fixed rates notes to pay off maturing obligations. JP Morgan Europe Ltd. was the sole book runner and issue manager for the offering.
Proceeds from the issue will be used by the company to refinance debts maturing this December.
The proposed issuance is being made to take advantage of the low interest rate environment.
Incorporated on May 3, 2003, JGSH is based in the British Virgin Islands.
JG Summit’s last venture in the debt market was in January 2002. The company issued $100-million four-year bonds with coupon of 9.25 percent.
The bond issue was arranged by ING Barings. Buoyed by the strong performance of its food, real estate and financial services businesses, profits of JG Summit jumped by 56 percent in the first quarter of the year to P920.83 million.
Excluding non-recurring gain from the recovery in value of investments amounting to P241.6 million, JG Summit’s first quarter profits would have amounted to only P679.2 million or a 15-percent increase over the same period last year.