A Brown raises P4B from maiden bond issue

Property and mining firm A Brown Co. Inc. has tapped the domestic debt market for the first time, raising P4 billion from its maiden fixed-rate bond issuance to fund expansion projects and refinance part of its capital structure.

In a disclosure on Friday, the company said the bonds were listed on the Philippine Dealing & Exchange Corp., after attracting strong demand from both institutional and retail investors.

The offer was oversubscribed against its base size of P3 billion.

The issuance consisted of P2 billion worth of three-year Series A fixed-rate bonds due 2029 carrying an interest rate of 7.4428 percent per annum and P2 billion in five-year Series B fixed-rate bonds due 2031 with a coupon of 7.9583 percent annually.

The bonds form part of A Brown’s P12-billion shelf registration program.

“This P4 billion issuance marks our first entry into the Philippine bond market and comes as A Brown celebrates 60 years of building communities across Mindanao and, now, Luzon. Proceeds will support both our real estate pipeline and our renewable energy portfolio—the two pillars of A Brown’s next chapter,” A Brown president Paul Francis B. Juat said.

Net proceeds from the transaction will also be used for the redemption of Series A Preferred Shares and for general corporate purposes.

The transaction was arranged by PNB Capital and Investment Corp. as sole issue manager. It also served alongside Land Bank of the Philippines as joint lead underwriter and joint bookrunner for the offering.

A Brown is primarily engaged in real estate development, with projects concentrated in Cagayan de Oro City, Butuan City, Bukidnon and Tanay.

The company has also been expanding its presence in the renewable energy sector through its wholly owned unit ABC Energy Inc.