MANILA, Philippines - Hybrid rice producer SL Agritech Corp. successfully raised P1 billion from the issuance of short-term commercial papers, which was oversubscribed.
The company closed the offer period on the third day of a five-day offer period due to the oversubscription.
“Investors sought short-term investment instruments that are tradable and highly rated,” SL Agritech chairman and CEO Henry Lim Bon Liong said.
The sole underwriter of the issue was Multinational Investment Bancorporation while the selling agents were AB Capital & Investment Corp. and Philippine Commercial Capital Inc.
The commercial paper carries an interest rate of 4.5 percent for Series A, 4.75 percent for Series B, and 5.25 percent for Series C.
Series A and B are denominated in P5 million lot sizes with increments of P100,000 while Series C is in P500,000 with increments of P100,000.
The STCPs are to be listed on the Philippine Dealing & Exchange for secondary trading.
The issue obtained an issuer rating of PRS Aa from local credit watchdog Philippine Rating Services Corp.
A company rated PRS Aa differs from the highest-rated corporates only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.
An issuer rating is an opinion on the general and overall creditworthiness of an issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year.
In assigning the rating, PhilRatings considered SL Agritech’s good market position, strong core revenue generation, and the positive prospects for the hybrid rice industry.
PhilRatings likewise took into account SL Agritech’s financial strength and stability under normal and stressed conditions.