Quedancor issues P250-M corporate notes

The Quedan and Rural Credit Guarantee Corp. (Quedancor) has issued P250 million worth of corporate notes.

First Metro Investment Corp. (FMIC) and United Coconut Planters Bank (UCPB) are the joint issue managers and lead arrangers for the offering.

The issue is the second of two tranches programmed to raise a total of P1 billion for Quedancor. Proceeds from the notes offering will be used for re-lending under Quedancor’s various loan programs.

The first tranche amounting to P750 million was issued in December of 2005, with the Land Bank of the Philippines (LBP) as trustee for the issue. The noteholders, on the other hand, are Philippine Postal Savings Bank Inc., Rural Bank of Makati Inc., Lipa Bank Inc., Merchants Savings and Loan Association Inc. and Robinsons Savings Bank, and FMIC.

The P250-million notes complete Quedancor’s second foray into the debt capital markets.

In June 2005, Quedancor successfully floated a P1.5-billion Multi-Series Bond offering to banks and insurance companies. The bonds and notes serve as alternative compliance for Agri-Agra requirements and as admitted reserve assets.

Quedancor, which is owned majority by the government implements various retail lending programs to service the financial requirements of its clients. These programs fall under agriculture, agrarian and aqua production loans; micro financing for the urban and rural poor; and income augmentation livelihood programs for government employees.