Alliance Global Group Cayman Islands Inc., a unit of Alliance Global Group Inc. (AGI), has raised $500 million (P22.33 billion) through dollar-denominated guaranteed notes to pay off the loan of its liquor subsidiary Emperador Inc., a company statement said.
It said the notes, issued on Friday, April 8, at a rate of 6.50 percent and due in 2017, will refinance Emperador’s loan of 210 million British pounds or about P15.16 billion from The Hongkong and Shanghai Banking Corp. Ltd. (Hong Kong Branch) and JP Morgan Chase Bank N.A. (Singapore Branch).
The loan was availed of by Emperador’s international investment unit Emperador International Limited (EIL) in September last year, with tenure of 1 year and interest pegged at a margin of 1.25 percent per annum.
Emperador used the money to expand its core alcoholic beverage business globally. It included new operations in the 500-hectare technologically advanced vineyard in Toledo, Spain by Emperador’s Spain-based subsidiary Grupo Emperador Spain, S.A., which is expected to raise grape produce by 500 percent annually.
The 500-hectare Toledo vineyard is within Emperador’s over-a-thousand hectares prime vineyard in Spain acquired for P5.8 billion in August last year.
Emperador has announced it aims to double its net income by 2017 from the P5.8 billion recorded in 2013, adding it will be driven by domestic and global expansion of its liquor business.
The notes are listed on the Singapore Exchange Securities Trading Ltd. filed under AGI and Alliance Global Group Cayman Islands.
Emperador Inc. wholly owns EDI, which is under the Tan Group of Companies. It manufactures and distributes Emperador, Generoso, The BaR, Emperador Deluxe and Emperador Light. It also distributes potato snack products under the Pik-Nik brand.
AGI also has interests in property development (Megaworld Corp.); quick-service restaurants via McDonald’s franchise (Golden Arches Development Corp.); and integrated tourism development businesses via Resorts World Manila and Resorts World Bayshore (Travellers International Hotel Group Inc.).