The board of AgriNurture Inc., the agri products trading company of billionaire Antonio Tiu, has approved the sale of up to 75 million euros (about P4.2 billion) in long-term green bonds, proceeds of which will be used to expand its operations.
In its disclosure to the Philippine Stock Exchange, the company said the company will issue the commercial papers with maturity of up to seven years. The terms and conditions will still have to be finalized.
“The issuance shall fund the agricultural project expansion of the company geared towards climate change adaptation and minimized environmental footprint,” the company said.
The company is also increasing its authorized capital stock to P5 billion from the current P2 billion as it launched its stock rights offer, the terms of which are also being changed.
According to its new rules, shareholders participating in the stock rights offering, the company will give one warrant for every three stock rights availed.
“The ratio shall be one warrant equivalent to one underlying common share upon conversion,” the company said.
The warrants shall have the exercise price of a discounted rate of 5 percent of the weighted average volume of trade 15 days prior to maturity, to be exercised after 5 years from date of listing.
Meanwhile, Tiu’s energy firm Greenergy Holdings Inc. is also conducting its own stock rights offer, giving the same terms of one warrant for every three rights shares availed.
It is also using the same terms and conditions as in Agrinurture’s rights offer.
Agrinurture was incorporated in 1997 and became public in 2009. It started its business as an importer, trader and fabricator of postharvest agricultural machineries intended to improve the productivity and increase the income of rural Filipino farmers.
It eventually diversified into other agro-commercial businesses under the “farm-to-plate” model, focusing on the export trading of fresh produce as its main revenue stream.
Agrinurture said its income grew five folds in the first half to P356.99 million, from P70.72 million last year.
Sales fell 25 percent to P1.79 billion for the period from P2.4 billion last year. Philippine operations contributed 56 percent, while foreign operations accounted for 44 percent of consolidated sales.