The Securities and Exchange Commission (SEC) has cleared A Brown Company, Inc. to raise up to P12 billion from the debt market under a shelf-registration program. 

The listed firm is immediately seeking as much as P5 billion from an initial bond offering to bankroll renewable energy projects, property developments, and other corporate purposes.

The SEC said Wednesday its Commission En Banc, during a meeting on 16 June, “resolved to render effective the registration statement” covering A Brown Company’s planned issuance of up to P12 billion in fixed-rate bonds, subject to compliance with certain remaining requirements.

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

The offering includes three-year Series A bonds due in 2029 and five-year Series B bonds due in 2031, both to be offered at face value.

A Brown Company expects to net about P4.92 billion from the initial offer if the oversubscription option is fully exercised. 

Proceeds will be used to fund renewable energy investments, residential projects, the redemption of shares, and other general corporate purposes.

Based on the timetable submitted to the SEC, the offer period will run from 22 to 26 June, with the bonds scheduled for issuance and listing on the Philippine Dealing & Exchange Corp. on 3 July.

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