JG Summit’s overseas unit sets notes issue

MANILA, Philippines - The overseas unit of taipan John Gokongwei’s investment vehicle JG Summit Holdings Inc. plans to raise funds through the issuance of corporate notes.

JG Summit, which has been using its subsidiaries to raise fresh capital, will guarantee the notes.

“JGSH Philippines Ltd., a wholly-owned offshore subsidiary of JG Summit held through JG Summit Philippines Ltd., intends to issue, subject to market conditions, US dollar fixed rate notes,” the parent firm said in a disclosure to the stock exchange.

JG Summit hired Citigroup Global Markets Ltd., Credit Suisse Securities (Europe) Ltd. and The Hongkong and Shanghai Banking Corp. Ltd. as the joint book runners and joint lead managers for the proposed unrated notes sale.

The company did not provide additional details. Officials were not immediately available for comment.

In November, JG Summit announced it is looking to raise $250 million through bank loans by JGSH Philippines. It hired ING and Standard Chartered Bank to facilitate the five-year loans.

“The board of directors of the company has authorized its management to determine the extent of its participation as a guarantor as well as to finalize the terms and conditions of such guarantee,” it added.

In the nine months to September last year, the investment vehicle of the Gokongwei family reported a 36.5-percent growth in its net earnings to P10.76 billion, boosted by dividend income from its investment in Philippine Long Distance Telephone Co. as well as mark-to-market gains from financial assets.

JG Summit is into petrochemicals (JG Summit Petrochemicals Corp.), property (Robinsons Land Corp.), airline (Cebu Pacific operator Cebu Air Inc.) and food (Universal Robina Corp.).