LISTED chemical trader and distributor SBS Philippines Corp. (SBS) announced on Monday it has secured a P2.5-billion term loan from Security Bank Corp., which will be used to bankroll purchases of property-related investments.
SBS said the term loan is in line with its diversification strategy to improve the property-related investments portfolio of the company and provide for visible acquisition-driven growth.
“The loan from Security Bank will ensure that we have the resources available to take advantage of opportunities to acquire properties and property-related targets that become available. Presently, the group has already identified certain property investments which it hopes to close within the first half of 2017,” Victorina Ladringan, SBS executive vice president and investments officer, said in a disclosure to the Philippine Stock Exchange (PSE).
The company said its board of directors believes that property investments have much potential to contribute materially to the company’s earnings on a sustainable and long-term basis.
SBS reported P1.02 billion in consolidated net income and P1.98 billion in consolidated revenues in 2016, which translates to a full year earnings per share of P0.84 last year from P0.18 in 2015.
SBS Philippines is one of the major chemical traders and distributors in the Philippines, supplying more than
1,800 customers with over 3,000 chemical products sourced from more than 500 suppliers. It supplies to customers in various industries such as food ingredients, industrial, feeds and veterinary care, pharmaceutical, and personal care and cosmetics.
The company has a network of 15 warehouse facilities in five different sites in the Greater Manila Area and Bulacan Province, with a storage capacity exceeding 18,000 metric tons.