Emperador P15-B loan for overseas expansion


Emperador International Ltd. (EIL), the global investment arm of businessman Andrew Tan’s liquor unit Emperador Inc., on Tuesday borrowed 210 million British pounds (about P15.16 billion) for its alcoholic beverage business expansion overseas.

Emperador and its wholly owned subsidiary Emperador Distillers Inc. (EDI) are the guarantors of the EIL loan from The Hongkong and Shanghai Banking Corp. Ltd. (Hong Kong branch) and JP Morgan Chase Bank N.A. (Singapore branch). EIL is a subsidiary of EDI.

“The loan was fully availed today by EIL with a tenure of one year and interest pegged at a margin of 1.25 percent per annum over LIBOR,” Emperador said in a disclosure to the Philippine Stock Exchange, adding that “the loan shall be used for general corporate purposes related to the core business of beverage.”

Earlier, Emperador announced its goal to double net income by 2016 to 2017 from 2013’s P5.8 billion, explaining that growth will be driven by domestic and global expansion of its liquor business.

Included in the international expansion efforts are the operations in the 500-hectare technologically-advanced vineyard in Toledo, Spain by Emperador’s Spain-based subsidiary Grupo Emperador Spain, S.A.

The 500-hectare Toledo vineyard is part of Emperador’s over-a-thousand hectares prime vineyard land in Spain acquired for P5.8 billion in August last year.

Emperador also sees expansion in the Vietnam market with the launching of Emperador Deluxe this year.

EDI and all its subsidiaries are the liquor vehicles of businessman Andrew Tan, which manufacture, distribute and serve as bottlers of brandy and other alcoholic brands such as Emperador, Generoso, The BaR, Emperador Deluxe, and Emperador Light.

EDI is wholly owned by Emperador Inc., which is under the Tan Group of companies via Alliance Global Group Inc. Kristyn Nika M. Lazo


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