SEC approves A Brown Co.’s P12-B bond shelf registration

THE SECURITIES and Exchange Commission (SEC) has approved the shelf registration of up to P12 billion in fixed-rate bonds by A Brown Company, Inc., paving the way for an initial offering of up to P5 billion.

In a statement on Wednesday, the SEC said its commission en banc had approved the effectiveness of A Brown Company’s registration statement on June 16, subject to the company’s compliance with certain remaining requirements.

The initial tranche will consist of up to P3 billion in fixed-rate bonds, with an oversubscription option of up to P2 billion.

The offering will include three-year bonds due in 2029 and five-year bonds due in 2031, both to be issued at face value.

“A Brown Company expects to net around P4.92 billion from the initial offer, assuming the oversubscription option is fully exercised,” the SEC said.

Proceeds will be used to fund renewable energy investments, residential projects, share redemptions, and other general corporate purposes.

The offer period is scheduled from June 23 to 27, while the bonds are expected to be issued and listed on the Philippine Dealing & Exchange Corp. on July 3, based on the timetable submitted to the SEC.

PNB Capital and Investment Corp. will serve as sole issue manager, and joint lead underwriter and bookrunner with Land Bank of the Philippines.

A Brown Company is engaged in real estate development, with residential projects in Northern Mindanao, Caraga, and Tanay, Rizal. Through its subsidiaries and affiliates, the company also has interests in renewable energy, palm oil processing, electron-beam services, and water supply.

A Brown shares declined 5.33% to P0.71 each on Wednesday. — Alexandria Grace C. Magno