MANILA - The Philippine distributor of CAT heavy equipment plans to borrow P4 billion to refinance debt.
In a statement, China Banking Corporation today said it has been chosen as issue manager and lead underwriter for the notes issuance of Monark Equipment Corporation.
Proceeds of the IOUs, which would mature in five years, would be used to refinance long-term debts and for general corporate purposes.
“We appreciate their trust and confidence in us as we continue to pave the way to open the capital markets for first-time issuers like Monark, enabling them to diversify their funding base,” China Bank chief operating officer Ricardo R. Chua said.
Corporate notes are a quicker fund-raising option for top-tier corporations as they are sold to institutional investors unlike retail bonds, which are sold through a public offering and go through a more tedious regulatory approval process.
“The support from both the financial market and our major asset – our people – gives us greater initiative to move forward and to continue to be a driving force to support key industries,” Monark chairman Jose Antonio T. Banson said.
Holders of Monark corporate notes include China Bank, Bank of the Philippine Islands, and United Coconut Planters Bank. China Bank-Trust Group is the facility agent, registrar, and paying agent.
Established in 1962 to cater to the forestry business, Monark International Inc. shifted to equipment rentals and earthmoving contracts in 1980. In 1987, the company bagged the CAT dealership in the Philippines, leading to the incorporation of Monark Equipment.
source: interaksyon.com
