Phinma unit Philcement takes out P1-B mortgage for growth

A SUBSIDIARY of Phinma Corp. availed of a P1-billion time period mortgage for the growth of its cement facility to be taken from the proceeds of the father or mother firm’s bond issuance.

Philcement Corp., a 60%-owned unit of Phinma, availed of the mortgage on Sept. 16 for 1.5 years on the present market fee, the listed agency mentioned in a disclosure to the inventory trade on Monday.

Phinma mentioned that its board of administrators permitted the mortgage as a part of a plan to assist the expansion of its strategic enterprise items, which embrace funding holdings, property growth, building supplies, instructional companies, and enterprise course of outsourcing.

The mortgage proceeds might be utilized by Philcement to fund the growth and enchancment of its facility in Mariveles, Bataan.

“That is aligned with [Philcement’s] promise to guarantee Filipino customers with dependable, high-quality provide of cement merchandise beneath its legacy model, Union Cement,” the corporate mentioned.

On Might 6, 2021, Phinma filed with the Securities and Alternate Fee the registration assertion of its proposed providing of P2-billion fastened fee bonds due 2024.

It had an oversubscription choice of as much as P1 billion and had a proposal value of 100% of face worth, as acknowledged within the firm’s data assertion.

The corporate was issued the certificates of allow to supply securities on the market on Aug. 10, 2021. The bonds’ rate of interest was set at 3.53%.

Philcement is among the corporations beneath Phinma’s building supplies group together with Union Galvasteel Corp. and Phinma Photo voltaic Corp.

Within the first half, the development materials group posted a 13% enhance in consolidated revenues to P7.07 billion.

Nonetheless, the group’s web revenue declined 19.7% to P443.28 million from P551.89 million final yr, which the corporate attributed to increased prices amid world provide chain points.

Phinma’s topline jumped by 10.1% to P8.63 billion within the first semester from P7.84 billion in the identical interval a yr in the past.

In the meantime, its attributable web revenue declined by 7.4% within the first half to P406.83 million from P439.34 million in the identical interval final yr.

On Monday, shares in Phinma closed increased by 25 centavos or 1.22% to P20.75 apiece. — Justine Irish D. Tabile

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