Fruitas Holdings Secures P200 Million in Private Debt Financing to Support Expansion Plans

Fruitas Holdings, a leading food and beverage kiosk operator in the Philippines, has successfully raised P200 million through a private debt placement. The company plans to utilize the funds to support its growth initiatives and expand its presence in the market.

According to a disclosure to the Philippine Stock Exchange, Fruitas Holdings issued fixed-rate corporate notes to qualified institutional buyers. The notes have a maturity of three years and bear an interest rate of 6.0% per annum, payable quarterly. The private placement was arranged by China Bank Capital Corporation, who acted as the sole arranger and bookrunner for the transaction.

Lester Yu, President and CEO of Fruitas Holdings, expressed his satisfaction with the successful fundraising, stating, "We are pleased with the strong support from institutional investors, which demonstrates their confidence in our business model and growth prospects. The proceeds from this private placement will enable us to accelerate our expansion plans and strengthen our market position."

Fruitas Holdings intends to use the funds to open new stores, expand its product offerings, and invest in technology and operational improvements. The company currently operates over 1,000 stores across the Philippines under various brands such as Fruitas Fresh from Babot's Farm, Buko Loco, Juice Avenue, and The Mango Farm.

Why this matters: The successful private debt placement by Fruitas Holdings highlights the growing appetite of institutional investors for high-growth companies in the Philippine market. It also highlights the adaptability and promise of the food and beverage industry, notwithstanding the difficulties created by the COVID-19 pandemic.

Fruitas Holdings has demonstrated strong financial performance in recent years, with revenue growing by 23% to P1.95 billion in 2019. The company's net income also increased by 16% to P121 million in the same year. With the additional funding, Fruitas Holdings is well-positioned to capitalize on the growing demand for healthy and convenient food options in the Philippines.

The private debt placement is a significant milestone for Fruitas Holdings as it seeks to expand its footprint and capture a larger share of the market. Lester Yu commented, "We remain committed to delivering high-quality products and exceptional customer service to our valued customers. This funding will enable us to bring our offerings to more locations and introduce new and exciting products to meet the evolving needs of our consumers."

Key Takeaways

• Fruitas Holdings raised ₱200M through private debt placement to fund expansion.
• The 3-year corporate notes have a 6% annual interest rate, payable quarterly.
• Funds will be used to open new stores, expand product offerings, and improve operations.
• Fruitas operates over 1,000 stores in the Philippines under various brands.
• The fundraising demonstrates investor confidence in Fruitas' business model and growth prospects.