D&L to issue P5 B bonds

D&L Industries, the listed chemicals and food ingredients manufacturer, is offering up to P5 billion in fixed-rate bonds.

The base offer size is P3 billion but there is an oversubscription option of P2 billion, according to the registration statement filed with the Securities and Exchange Commission (SEC).

Proceeds from the offering will be used to partially finance its capital expenditures, including the completion of its Batangas expansion plant, to repay bridge loans and for general corporate purposes.

As part of its vital expansion plan to meet growing demand in the next 20 years, D&L is building two new manufacturing plants on a 26-hectare property in the First Industrial Township – Special Economic Zone in Tanauan, Batangas.

The company is building two new plants. One will be for food ingredients under D&L Premium Foods Corp. and an integrated facility to manufacture oleochemicals and downstream packaging under Natura Aeropack Corp.

D&L Premium Foods Corp. is a wholly owned subsidiary of Oleo-fats Inc., which caters to the growing export business for food.

For the bond offering, D&L tapped China Bank Capital Corp. as the sole issue manager, lead underwriter and sole bookrunner for the transaction.

For this year, the company expects its net income to return to 2019 levels.

“Compared to pre-pandemic levels, first quarter 2021 income seems to be tracking ahead of full year 2019 income but still slightly behind full year 2018 income. Assuming that first quarter income holds steady in the next couple of quarters, the company is set to at least reach its net income level in 2019,” D&L president Alvin Lao said.