A Brown Company Inc. (ABCI), the listed holding company of businessman Walter Brown, has kicked off the sale of up to P5 billion worth of fixed-rate bonds after receiving the necessary approvals from the Securities and Exchange Commission (SEC).

In a Wednesday disclosure, the company said it received on Tuesday the SEC’s Order of Registration covering the P12-billion bond program and a Permit to Offer Securities for Sale for the initial tranche.

The fundraising is the first drawdown from the company’s planned P12-billion bond shelf registration, allowing ABCI to tap the debt market for long-term funding.

The initial tranche consists of P3 billion in bonds, with an option to raise another P2 billion in case of strong investor demand.

Investors can choose between Series A bonds due in 2029 and Series B bonds due in 2031, both issued at par value. 

The offer will run until 26 June, although the period may be extended or shortened subject to regulatory approvals.

The company expects the bonds to be issued and listed on 3 July.

“Subject to applicable law and the terms and conditions of the Initial Tranche, the interest rate shall be at the fixed rate of 7.4428 percent per annum for the Series A Bonds and 7.9583 percent per annum for the Series B Bonds,” the company said.