ANI mulls $100-million bond sale

MANILA, Philippines - Listed agribusiness firm AgriNurture Inc. (ANI) is looking to make its first foray into the bond market with a $100-million sale to fund a massive buying spree.

ANI chairman and chief executive Antonio Tiu said the company is contemplating to issue long-term bonds in the domestic and/or overseas markets.

“It’s still in the preparatory stages. It’s our first time to do it,” Tiu said.

A long-term bond is a financial obligation that runs for at least seven years and pays higher interest rates.

Long-term bonds are considered a higher risk because interest rates are certain to change during their lifetime.

Tiu said proceeds from the bond debut would be used to bankroll its aggressive overseas acquisitions. At least P2 billion has been earmarked for acquisition of food distribution and production companies in Hong Kong, China, Australia, Europe and the US.

The company’s board last week approved the incorporation of AgriNurture HK Holdings Ltd. as a wholly owned subsidiary that will take charge of planned acquisitions overseas.

The new unit will also be listed on the Hong Kong Stock Exchange in the next six to nine months.

On the homefront, Tiu said ANI is keen on acquiring a juice factory but declined to give more details.

ANI, which supplies fruits, vegetables and rice to the country’s largest retailers like the SM Group, Puregold and Robinsons, has been diversifying from the fresh segment with the acquisition of popular fruit shake retailer The Big Chill Inc and Sugarhouse, a high-end cake shop with around 14 branches across the country.

The company also entered into a master license agreement with Singapore-based Tully’s Coffee International Pte. Ltd., the franchising subsidiary of leading specialty coffee and coffee maker Seattle-based Tully’s.

ANI supplies homegrown fruits such as banana, S&W sweet pineapple and papaya to customers in the Greater China Region, Japan, Korea, and the Middle Eastern, European, and North American Regions.

It is also engaged in the production and distribution of fruit beverages and puree, dried fruit snacks, processed fruit mix, frozen fruits and vegetables, rice products, tomato paste and fresh flowers.

ANI’s family of brands now includes FCA (Fresh Choice Always) fresh and processed wellness food products, La Natural coconut juice, Nikka mango nectar and tamarind juice.

ANI had a banner year in 2011, posting a record income of P216 million or more than double the P93.5 million recorded the previous year on strong growth across all units. Consolidated revenues jumped by 41 percent to P2.25 billion.

The farming group’s total output grew by nearly three-fold to register a 87-percent rise in net earnings.