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Lopez holding firm raises P4.3 billion from bourse float

By Earl Paolo Jaculbe

05/01/2008

The Lopez-controlled First Philippine Holdings Corp. (FPHC) raised P4.3 billion yesterday from the issue of non-voting preferred shares at the Philippine Stock Exchange (PSE).

Elpidio Ibañez, FPHC president and chief operating officer, said the proceeds from the float will be used to finance maturing obligations and to invest in joint venture projects.

The company will repay P4.8 billion in debts maturing next year. FPHC will also pay down $85 million in foreign debts ahead of maturity from the proceeds.

Ibañez had said the company owes Credit Suisse $50-million and a $35 million debt from the Tardy fund which it will service around May.

He also revealed FPHC’s next priority after debt servicing is investments in the solar power business.

Ibañez said the company will invest $18 million in a joint venture with the US-based Sun Power Corp. which designs, manufactures and delivers solar electric technology worldwide.

The demand for solar energy is already strong in the developed countries like Japan and the US because of increasing oil price, Ibañez said.

“The demand is already there, but the local situation will of course probably take more time before (solar power) becomes competitive,” Ibañez added.

Ibañez said last October the company planned to use parts of the proceeds to raise its stake, depending on their prices, in core subsidiaries like First Gen Corp., Manila North Tollways Corp. and Manila Electric Company.

“We are comfortable with the 33.4 percent shared ownership,” Ibañez said.

FPHC earlier planned to raise P5 billion to finance investments on government infrastructure including Subic Bay toll way project and the LRT (Monumento)-MRT (North Avenue) Loop.

The company originally applied to list up to 50 million series “B” perpetual preferred shares with a par value of P100. 30-million shares would cover the company’s follow-on public Offering and 20 million shares to cover for the over-allotment option.

FPHC, however, decided last April 15 to exercise its over-allotment option to the extent of 13 million series B perpetual preferred shares instead of 20 million or a total of 43 million preferred shares.

FPHC hired BDO Capital and Investment Corp. as issue manager and sole book runner for the transactions.