Roxas Holdings taps P900M loan

MANILA, Philippines - Listed sugar miller Roxas Holdings, Inc (RHI) is drawing a P900-million credit facility from Asia United Bank (AUB)  for its expansion activities.

The credit facility consists of omnibus lines of P450 million each to its subsidiaries Central Azucarera Don Pedro, Inc. (CADPI) based in Batangas, and Central Azucarera de la Carlota Inc. (CACI) which operates in Negros Occidental.

RHI executive chairman Pedro E. Roxas said the loans granted by AUB would help the company expand its business and improve operational efficiency.

AUB president Abraham T. Co commended the partnership between the sugar group and the banking arm of the Rebisco Group of Companies.

“The credit facility that AUB granted to RHI will nurture the strong relationship between the two companies and foster more collaboration in the future as AUB supports RHI’s vision to be globally-competitive,” he said.

AUB also granted a P200-million credit facility to RHI’s sister company, Roxaco Land Corp. – the property arm of Roxas & Co., Inc.

Roxas, who is also the president and CEO of Roxaco, said the group would use the credit facility for its continuing expansion projects from Batangas to other key tourist destinations in the Philippines.

The company earlier announced that it intends to carry out in the next three years strategic measures to prepare for increased global competition brought about by the reduction in tariff of sugar imports from 48 percent in 2010 to five percent in 2015 within the ASEAN region.

Filipino sugar millers are particularly threatened by the influx of cheap sugar from Thailand.

The company recorded a 36 percent increase in net income for the first semester of its fiscal year ending March 31, 2013 to P205 million from P151 million in the same period the previous fiscal year despite a drop in consolidated revenues

RHI’s consolidated revenues fell 19 percent to P2.9 billion from P3.5 billion last year. This included a one-time export of carry-over raw sugar from the preceding crop year, amounting to P1.1 billion.

The company attributed the  higher net income in the first half due to better gross profit margin, lower operating expenses, and reduced interest expenses.