FMIC raises P11.8B in corporate capital

In the first four months of 2007, First Metro Investment Corp. (FMIC) was involved in corporate capital raising activities valued in the vicinity of P11.8 billion.

FMIC is the investment banking subsidiary of the Metropolitan Bank and Trust Co. (Metrobank), and considered among the leaders among domestic investment houses.

"We still have several major projects in the pipeline for the rest of the year involving airlines, regional funds, and port operators," Roberto Juanchito T. Dispo, FMIC executive vice president said, indicating that the present value of transactions may be a mere quarter of the prospects for the entire year.

Among the big ticket transactions were the P5-billion corporate notes for First Philippine Holdings Inc., corporate notes for Petron Corp. worth P2 billion, and corporate notes for Metro Card Corp. worth P2 billion.

FMIC was also involved recently in the P1.6 billion securitization of the debt notes of Stradcom.

The Metrobank subsidiary co-wrote with RCBC Capital Corp. the rights offer of construction firm EEI worth P504 million last March.

It extended a corporate loan to Lapanday Corp. worth P600 million last January, and followed this up with another loan for Pancake House worth P150 million last March.

Recently, FMIC was appointed financial adviser and issue manager by TKC Steel Corp.

TKC Steel Corp. said that the offer proceeds will be used to expand the business in mainland China. It also filed an application with the Philippine Stock Exchange (PSE) for the upgrade of its listing from the SME Board to the Second Board.

It applied for the additional listing of 680 million common shares which were subscribed by majority shareholder, Star Equities.The resulting equity infusion from Star Equities of P680-million will be used by TKC Steel to acquire control of two steel businesses.

These are the Treasure Steelworks Corp. in Iligan, and a 90-percent stake in Zhangzhou Stronghold Steel Works Co. Ltd. in Fujian, mainland China.

Zhangzhou Stronghold Steel is the first seamless pipe manufacturer used for the oil and gas industry. It will be serving not only the domestic China market but also nearby export markets like Indonesia, Philippines and other Southeast Asian countries.

Treasure Steelworks operates the largest steel billet plant in the Philippines with an annual rated capacity of 300,000 metric tons. Its products are used by rebar manufacturers to produce steel bars for the construction industry.

Star Equities is an investment and holding company owned by the Tiu family. They are also involved in Goodyear Steel Pipe Corp., property development and tourism under the Discovery Suites Group flagship, and financial services, such as i-Remit and Sterling Bank of Asia. — Ted Torres