Del Monte resets launch of dollar-denominated securities


FRUIT canner Del Monte Pacific Limited (DMPL) pushed back the issue date of its planned $360-million dollar denominated securities (DDS) to sometime in March from the previously announced schedule of January as its issue manager and the stock exchange are still firming up their systems and training to accommodate the first-ever DDS issuance in the Philippines.

Ed Francisco, president of BDO Capital & Investment Corp., said on Tuesday that the issuance of Del Monte’s DDS will likely be sometime in March as they are still preparing for the first such issue in the domestic capital market.

“Maybe March. There’s already demand. But we still have to enhance our system in trading dollars. Mainly upgrading the system, even the PSE [Philippine Stock Exchange] is doing it. And also we are training our brokers to trade in dollars. Under the rules, it’s a minimum of two brokers. Now we’re undergoing user acceptance testing [for the broker training], hopefully we’ll receive that this week,” Francisco told reporters after a briefing on the P60-billion stock rights offering of BDO Unibank Inc.

BDO Capital was appointed lead underwriter for Del Monte’s dollar-denominated issue, which is under a three-year shelf registration program of the Securities and Exchange Commission (SEC).

DMPL earlier said it planned to issue an initial $250-million tranche early this year and issue the balance within the three-year shelf period.

DMPL is a fruit canner listed on both the Singapore Exchange Limited and the PSE. It owns the leading brand Del Monte across food and beverage categories in the Philippines, Asia, the Middle East and the US, as well as in India via joint venture firm FieldFresh Foods with one of India’s largest conglomerates, Bharti Enterprises.


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