MASS housing developer 8990 Holdings Inc. saw a torrent of investors flock to its recent bond offering, from which the company was able to raise P9 billion in fresh funds.
“It was oversubscribed by around 2 times . . . That’s why we tapped an extra P4 billion, bringing it to P9 billion,” Eduardo Francisco, BDO Capital & Investment Corp. president, told The Manila Times in a text message.
BDO Capital was one of the joint issue managers of bond sale, together with First Metro Investment Corp. and SB Capital Investment Corp. They are joined by China Banking Corp. as underwriter and bookrunner.
The bonds were offered from June 26 to July 9, and consisted of a P5-billion base offer and another P4 billion to cover the oversubscription.
Francisco said the bond offer was mainly bought by local investors, majority of which were based in the capital.
“Around half of the volume in pesos is institutional. But, of course, maybe 90 percent of the number of investors are retail,” the BDO Capital chief said.
The offer consisted of P8.4-billion of Series A bonds (due 2020) at 6.2080 percent, P375.5 million of Series B (due 2022) at 6.1310 percent, and P218.91 million of Series C (due 2025) at 6.8666 percent.
The net proceeds of P8.875 billion after expenses and taxes will be used to partly refinance the company’s existing debt of P9 billion.
The bonds will be listed on the Philippine Dealing and Exchange Corp. on Thursday, July 16.