The capital hike is intended to cover additional working capital requirements, documents filed at the SEC showed.
Rustan Supercenters earlier obtained a P200-million long-term loan from the Bank of Commerce and Equitable PCI Bank. The loan has a term of five years, with Rustan getting a one-year grace period.
The company, a member of the Rustan’s Group of Companies, has five supermarkets, five full-line department stores and 12 Express Lane stores. It also operates three Shopwise Supercenters around Metro Manila: in the Filinvest Festival Mall in Alabang, Muntinlupa, along Vito Cruz Street in Makati City, and in Libis, Quezon City. Total revenues average P13 billion annually.
As competition among local retailers has intensified in the area of market positioning and brand building, the Rustan Supercenters group has remained committed to raising supermarket product and service concepts to further widen its market reach.
To further beef up its operations, Rustan’s is considering forging a joint venture with one of the major foreign retailing groups, planning to invest in the Philippines.
Since the enactment of the Retail Trade Liberalization Law, retail companies Walmart, Carrefour, Tesco and Casino have been gearing up for entry in the Philippines. However, lackluster economic conditions have forced them to delay their plans.
Rustan’s wants to make a difference in grocery shopping by offering unique products and fresh produce like seafood, fruits and vegetables, meat and poultry, delicatessen and dairy, bread and pastries.
Despite the continuing economic slowdown, the Rustan’s Group continues to display steady growth.