The Securities and Exchange Commission (SEC) of the Philippines has considered favorably the public offering by D&L Industries Inc. of fixed-rate bonds worth up to PHP5 billion, proceeds of which will be used to finance the expansion of its plant in Batangas and the partial repayment of bridge loans.

The food and plastic manufacturer is ramping up exports of coconut-based products amid strong demand due to its perceived natural antiviral and antibacterial properties amid the pandemic.

In its meeting on August 26, the commission en banc resolved to render effective the registration statement of D&L covering up to PHP3 billion of Series A bonds due in 2024 and Series B bonds due in 2026, with an oversubscription option of up to PHP2 billion, subject to certain remaining requirements.

D&L expects to net up to PHP4.93 billion from the offer, assuming the oversubscription option is fully exercised.

The proceeds will be used to finance the expansion of the food and plastic manufacturer’s plant in Batangas, as well as for the partial repayment of bridge loans.

The offer is scheduled for September 1 to 6, with a listing on the Philippine Dealing & Exchange Corp. (PDEx) slated for September 10, according to the latest timetable submitted to the SEC.

The D&L moved to May next year the start of the commercial run of its Batangas plant after the Board of the Philippine Economic Zone Authority granted an extension of the start of commercial operations to January 2023.

This is in consideration of the challenges and delays encountered due to the recent spike in coronavirus disease 2019 cases, subsequent reimposition of enhanced community quarantine (ECQ) and modified ECQ, and shipping delays for equipment and machineries for the plant.