Listed sugar conglomerate Roxas Holdings Inc. (RHI) recently signed a P900-million credit facility with Asia United Bank (AUB) for business expansion and improvement in its operational efficiencies.
In a disclosure to the Philippine Stock Exchange, RHI Executive Chairman Pedro Roxas said that the credit facility consisted of omnibus lines of P450 million each to its subsidiaries Central Azucarera Don Pedro Inc. (Cadpi) in Batangas and Central Azucarera de la Carlota Inc. (CACI) in Negros Occidental.
“Together with RHI’s free cash flow, the credit lines granted by the AUB will enable the company to grow its business and improve its operational efficiencies,” Roxas said.
AUB President Abraham Co said that the credit facility extended to RHI will nurture the strong relationship between the two companies, and foster more collaboration in the future as the bank supports RHI’s vision to be globally competitive.
AUB is the banking arm of Rebisco Group of Companies.
RHI earlier reported that its net income in the six-month period ending March grew by 36 percent year-on-year to P205 million on better gross profit margin, lower operating expenses and lower debt burden.
The sugar firm also said that its net income for the quarter ending March 31 alone had surged by 141 percent year-on-year to P171 million from P70 million, on the back of higher revenues.
The company said that it is making headway in its product diversification efforts to further boost the competitiveness of the RHI group. Besides this, optimizing the capacity utilization of its plants will be pushed for the next year.
In a related development, AUB also granted a P200-million credit facility to RHI’s sister company Roxaco Land Corp.—the property arm of Roxas and Company Inc.
Roxas, who is also the president and chief executive officer of Roxaco, said that the group will use the credit facility in its continuing expansion projects that spill over from Batangas to other key tourist destinations in the Philippines.