MANILA, Philippines - Concepcion-owned food and beverage conglomerate RFM Corp. has signed an agreement with a syndicate of banks for the issuance of up to P1.5 billion worth of floating rate notes.
In a disclosure to the Philippine Stock Exchange, RFM said Banco de Oro Unibank, Inc., Security Bank Corp., Bank of the Philippine Islands, Philippine Veterans Bank, Philippine Bank of Communications, MayBank Philippines, BDO Private Bank Inc. and Wealth Advisory & Trust Group will serve as noteholders.
BDO Capital & Investment Corp. and SB Capital Investment Corp., on the other hand, will be the joint lead arrangers while Security Bank Corp. Trust Division will be the facility agent.
Proceeds from the notes issue will be used to refinance debt and fund capital expenditures.
RFM earlier said it was allocating P1 billion for its expansion and working capital requirements next year in line with its strategy to augment revenues and improve operating margins.
The food and drinks firm reported a 193 percent jump in net earnings in the first half this year to P395 million. Sales grew 10.2 percent to P4.2 billion, mainly driven by successful product innovations in the branded business, coupled with aggressive marketing campaigns.
RFM said it is confident it would exceed its full year income target of P480 million.
The group’s ice cream unit, Selecta, a joint venture with Unilever, registered a 50 growth in sales, boosting its market share to 68 percent while its competitors reported a decline in their market share.
Another RFM product, Fiesta spaghetti, also performed well, taking a dominant position due to its value-for-money proposition to consumers as well as the improved performance of its Selecta milk and Swift meat groups.