First Gen Corp. is the next major fund-raiser among listed companies as it intends to raise as much as P10 billion, or $250 million via a bond offering.
First Gen priced on Thursday a $250-million 10-year non-call senior unsecured bond issue at a fixed coupon of 6.50 percent per annum. The bond will mature on October 9, 2023.
“The proceeds from the issue will be used to invest in power projects and general corporate purposes,” the company further said in its filing with the Philippine Stock Exchange.
The transaction, according to First Gen, garnered strong interest from offshore accounts in Asia and Europe, pricing tighter than initial guidance.
Deutsche Bank, HSBC and JP Morgan have been tapped as joint lead managers and joint lead bookrunners for the transaction. BDO Capital and Investment Corp. and Development Bank of the Philippines will serve as domestic lead managers for the transaction.
It was reported weeks ago that First Gen tapped three financial institutions to arrange investor meetings here and overseas for a potential dollar-denominated bond offering.
“The company mandated Deutsche Bank, HSBC and JP Morgan to arrange a series of fixed-income investor meetings in Manila, Hong Kong and Singapore,” the firm’s previous disclosure said, adding that a Regulation “S” US dollar bond offering may eventually follow but still subject to market conditions.
During the first half of the year, First Gen reported a net income attributable to equity holders of the parent firm of $77.7 million for the first semester ended June 30, 2013, a decline of 17.4 percent from the $94 million the firm registered in the same period in 2012.
According to the Lopez-led firm, the decline in its profit was caused by the lower income it gained from its subsidiaries, First Gen Hydro Power Corp. and Energy Development Corp.