A Brown Company, Inc. has secured an investment-grade rating for its planned bond issuance, strengthening its position in the capital market as it raises funds to support expansion across real estate and renewable energy.

The company confirmed on Monday that it received an investment grade Issue Credit Rating of PRS A plus, with a Stable Outlook, from the Philippine Rating Services Corp. (PhilRatings) for its maiden bond issuance of up to P5 billion.

Obligations rated PRS A plus have favorable investment attributes and are considered as upper-medium grade obligations, with the obligor’s capacity to meet its financial commitments remaining strong. 

The company said the rating affirms its financial soundness and its ability to execute on its business strategy across real estate, agribusiness, and energy.

In connection with this rating, A Brown filed a Registration Statement with the Securities and Exchange Commission (SEC) to offer and sell to the public fixed-rate peso-denominated bonds with an aggregate principal amount of up to P3 billion, with an Oversubscription Option of up to p2.0 billion for a total potential issuance of up to P5 billion.

The Offer forms part of A Brown’s P12 billion Shelf Registration. The Offer Bonds will be issued in up to two (2) series: (a) Series A Bonds due 2029, and (b) Series B Bonds due 2031.

The Offer Bonds will be issued at 100 percent face value, with interest payable quarterly in arrears, calculated on a 30/360-day count basis. The target issue date for the Offer Bonds is 3 July. The Offer Bonds will be listed and traded on the Philippine Dealing & Exchange Corp.

Net proceeds from the Offer will be used for renewable energy investments, to partially finance development costs for A Brown’s identified residential pipeline projects, the redemption of Series A Preferred Shares, and for general corporate purposes.

PhilRatings cited ABCI’s strong real estate presence in Mindanao with ongoing expansion into Luzon, its experienced management team, sustained revenue recovery supported by growing real estate sales, and its ample liquidity and conservative capital structure as the key considerations underpinning the assigned rating.

PNB Capital and Investment Corp. is the Sole Issue Manager for this transaction. Together with Land Bank of the Philippines, they serve as Joint Lead Underwriters and Joint Bookrunners for the Offer.