Listed agribusiness firm Calata Corp. is looking to raise as much as P300 million from the fixed income market to fund expansion programs.
In a disclosure to the Philippine Stock Exchange on Thursday, Calata said its board of directors approved on Wednesday the planned issuance of P300 million worth of corporate notes – P200 million as base offer and P100 million for oversubscription.
The corporate notes will mature in two years and one day from the issue date, carrying an interest rate of 7.50 percent a year.
The issue will only be offered to “select qualified institutional buyers, and to not more than 19 investors within a 12 month period.” Because of this and of issue size, the corporate notes are exempt from regulatory requirements of the Securities and Exchange Commission.
Net proceeds of P291.6 million after offer-related fees and taxes will be used “to finance planned expenditures related to its business expansion, diversification strategy and to finance general working capital requirements.”
Aside from its usual business of distribution, retail and farming of agro-chemicals, feeds, fertilizers, veterinary medicines and other agricultural products, Calata last month said it has entered the lechon business, which is seen to account for 15 percent of the company’s yearly revenues.
In the first nine months of 2015, the company saw its net income improved by 20.5 percent to P96.37 million from P79.96 million a year earlier. Revenues increased by 38 percent to P1.6 billion from P1.16 billion.
Calata expects to open five farms in 2016, a P53.07-billion broiler farm in Bukidnon and an P11.71-billion hog farm in Davao – both at the end of March. Two broiler farms will also open in Davao (P24.49-billion) and Bukidnon (P6.95-billion) at end of June, and a P22.87-billion broiler breeder farm in Isabela at the end of September.
Incorporated in 1999, Calata is engaged in farming, distribution and retailing of livestock and agriculture products such as animal feeds, fertilizers, agro-chemicals, soya, meat and swine livestock, and seeds and other products.