Calata Corp. borrows P50M in cash from SMBC Metro Investment Corp.
Calata Corp., a listed distributor of various products for farmers, has borrowed P50 million in cash from SMBC Metro Investment Corp.
In a disclosure to the stock exchange today, Calata said it issued P50 million in promissory notes to SMBC Metro Investment. The notes carry an interest rate of seven percent for one year.
SMBC Metro Investment Corp. is a joint venture between a subsidiary of the Ty family’s Metropolitan Bank and Trust Company and Japan’s Sumitomo Mitsui Banking Corp.
Calata, originally incorporated as Planters Choice Agro Products in 1999, listed on the exchange on May 23, 2012. It distributes agro-chemicals, feeds, fertilizers, veterinary medicines and other agricultural products.
At the end of September 2015, Calata reported its total assets at P1.88 billion and liabilities totalling P907 million.
Calata’s board approved the issuance of P200 million worth of two-year corporate notes on December 16, 2016 with a yield of 7.5 percent and an oversubscription option of P100 million. The company has not disclosed any update on the two-year corporate notes and it is not clear how the issuance of the P50-million one-year promissory notes impacts on the two-year notes. (By: Eileen A. Mencias)