Primex Group Prepays All Bank Obligations
Manila–(PHStocks)–Listed property developer Primex Corp. (PSE: PRMX) disclosed that, together with its subsidiary Primex Realty Corp. and affiliate Primex Land Inc., the group, which has a total approved loan line of PhP1.8 billion, was able to prepay all its bank obligations with Metrobank (PSE: MBT) and BDO Unibank (PSE: BDO) as of January 3, 2017.
The listed firm has an approved loan with Metrobank amounting to PhP300 million, which is due to mature on April 2020, while its subsidiary, Primex Realty Corp., the owner and developer of a 31-storey residential tower in Salcedo Village Makati prepaid both its term loan with Metrobank amounting to PhP700 million and its 500 Million loan with BDO. The Metrobank loan that matured last July 6, 2016 was fully paid three months ahead of time, while the BDO loan that will mature in 2020 was fully settled before the year 2016 ended. Also, its affiliate Primex Land Inc. was able to wipe out all its bank obligations of PhP300 million five months ahead of maturity.
“Eliminating our already low debt levels help make Primex a fundamentally stronger company especially at a time when the market is expecting a rise in interest rates. Additionally, our debt-to-equity levels should now be among the healthiest and lowest among the most valuable 20 listed property developers in the country,” Primex Chairman Ernesto O. Ang was quoted in a statement as saying. “We were able to achieve this with our recent record profitability supported by steady and robust cash flows coming from foreign and institutional investors.”
“Our current financial position even allows us to pay dividends to shareholders which we are planning for 2017, on top of our acquisition and upcoming development projects,” added Ang. The company is also formulating a dividend policy in view of the steady improvement in the company’s financial performance and for the benefit of their stockholders who have supported the company.
The early settlement of the bank loans is expected to bolster the company’s financial standing in the domestic lending market. This shall also lead to the banks’ higher trust and confidence in the group, resulting in lower lending rates and increased allocation of funding.