SL Agritech to raise P2B from commercial paper sale
Leading hybrid rice producer SL Agritech Corp. plans to issue up to P2 billion in commercial papers to fund its expansion initiatives.
SL Agritech obtained an issuer rating of PRS Aa (corp.), with a positive outlook by local credit watchdog Philippine Rating Services Corp. (PhilRatings).
An issuer rating is an opinion on the general and overall creditworthiness of the issuer, evaluating its ability to meet all its financial obligations within a time horizon of one year.
A company rated PRS Aa (corp.) differs from the highest-rated corporates only to a small degree, and has a strong capacity to meet its financial commitments relative to that of other Philippine corporates.
In assigning the rating, PhilRatings considered SL Agritech’s leading market position in hybrid rice technology in the Philippines, sustained high-growth trajectory, strong shareholder support, and the potential upside given a favorable regulatory environment.
Owned by businessman Henry Lim Bon Liong, SL Agritech has seen steady growth in its net income in the past years. For its fiscal year ending May 31, 2017, profit rose 10.9% to P509.2 million as sales surged 30.7 percent to P3.3 billion.
SL Agritech is affiliated with the Sterling Paper Group of Companies, a diversified conglomerate involved in the manufacture of paper products, and the distribution of school and office supplies, furniture, retailing, real estate development and agriculture.