Manila, Philippines - First Metro Investment Corp. (FMIC) plans to issue up to P7 billion worth of fixed-rate corporate bond “to improve part of its liabilities for longer tenure,” a top company official said.
FMIC president Roberto Juanchito Dispo said the bond proceeds would address its various corporate businesses mainly in financing and fund-raising activities.
“We want to lengthen our deposit base, deploy proceeds in fixed interest income coming mainly in government securities, as well as improve our position in longer tenure instruments,” he said.
FMIC, a subsidiary of Metropolitan Bank & Trust Co. (Metrobank), is involved in a host of investment activities such as treasury, mutual funds, securities trading, banking and fund-raising.
The bonds will be offered initially for up to P5 billion in two or more tranches, with a greenshoe option of up to P2 billion.
Meanwhile, FMIC made an additional capital infusion amounting to P1.6 billion in Global Business Power Corp.
“The capital infusion is a capital call by Global Business Power and represents the proportionate share based on FMIC’s current ownership of 49.11 percent,” Dispo said.
He explained that the capital infusion would assist Global Business Power in funding a 62-megawatt (MW), coal-fired power plant in Toledo City, Cebu.
Global Business Power is a joint venture between Global Business Holdings Inc. and FMIC. It is one of the leading independent power producers (IPP) in the Visayas, with a combined total capacity of 633 MW servicing Cebu, Iloilo, Oriental Mindoro and Aklan.
It is the parent company of the following power plants: GBH Power Resources Inc., Toledo Power Co., Panay Power Corp. and Panay Energy Development Corp. It likewise has an interest in Cebu Energy Development Corp., which is under a consortium where Global Power is a main investor through Global Formosa Power Holdings Inc.