GT Capital launches P12-B bond offer

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George Ty’s GT Capital Holdings Inc. launched a bond offer on Friday, seeking to raise P12 billion to refinance outstanding loans, partially finance projects, and working capital requirements.

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According to the bond sale’s final prospectus, GT Capital will issue P10 billion fixed-rate bonds, with additional P2-billion offer in case of oversubscription. The offer period will wrap up on July 31.

Net proceeds are expected to reach P11.87 billion, after fees and other issue-related costs are deducted.

The bond issue comes in three tranches: Series A with five-year maturity carrying an interest rate of 4.7106 percent per year; Series B due 2021 with a 5.1965 percent interest; and Series C with an interest of 5.6250 and a 10-year tenor.

The bonds will be issued in scripless form in minimum denominations of P50,000 each and in multiples of P10,000 thereafter. It will be offered to the public at 100 percent of face value, which will be later listed on the Philippine Depository and Trust Corp.

First Metro Investment Corp has been appointed issue manager and bookrunner, while the underwriters consist of BDO Capital and Investment Corp., BPI Capital Corp. and China Banking Corp.

Philippine Rating Services Corp. (PhilRatings) rated the bonds with a PRS Aaa — the highest rating given to long-term debt securities that have the “highest quality with minimal credit risk.”

On Thursday, the Securities and Exchange Commission (SEC) approved the registration of the P12-billion bond issue.

Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land Inc.), power (Global Business Power Corp.), automotive (Toyota Motor Philippines), insurance (Philippine AXA Life Insurance Corp.), and non-life insurance (Charter Ping An Insurance Corp.).

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