GT Capital to issue P10-B fixed-rate bonds

MANILA, Philippines - GT Capital Holdings Inc., the flagship investment firm of banking tycoon George S.K. Ty,  is issuing up to P10 billion worth of fixed-rate bonds to support its capital expenditure program.

In a disclosure to the Philippine Stock Exchange, GT Capital said the amount is inclusive of an overallotment option worth P2 billion.

The bonds will be issued through a public offer at par, or 100 percent of face value.  

GT Capital earlier said it was looking to raise as much as P9 billion through loans to take advantage of the current low interest  rates and to optimize the company’s under-leveraged position.

The conglomerate remains on a fast-paced growth trajectory on the back of the country’s strong economic growth, robust domestic consumer spending and steady flow of remittances from overseas Filipino workers.

GT Capital more than doubled its nine-month net profit to P5.3 billion, mainly due to one-time gains booked by property unit Federal Land Inc.

Excluding non-recurring items, nine-month core net income went up 51 percent to P3.9 billion.

Consolidated revenue surged 211 percent to P16.7 billion, driven by the expansion of core businesses and the consolidation of Global Business Power Corp. (GBPC) earlier this year, improved net income from associates, and a non-recurring gain of P1.4 billion realized by FedLand.

GT Capital is staying focused on strengthening its core businesses to sustain growth.  It has diverse investments in established companies dominant in their respective markets that include Metrobank, FedLand, Toyota Motor Philippines, GBPC, and Philippine AXA Life Insurance, a joint venture with the AXA Group, one of the world’s largest life insurers.

GT Capital has acquired an additional 30 percent stake in Toyota Motors Philippines valued at P9 billion.  The transaction, when completed, will raise GT Capital’s total shareholdings in the automotive firm to 51 percent.

The holding firm’s capital expenditure program for next year is slightly higher than the P15 billion budgeted this year due to the construction of two power plants and the completion of existing real estate projects.