Roxas and Co. Inc. (RCI) on Monday said it entered into an omnibus loan and security agreement with China Banking Corp. (Chinabank).
In its disclosure, Chinabank has agreed to extend to RCI a term loan facility worth P1.93 billion.
The proceeds will be used to refinance the company’s and its subsidiaries’ existing loan obligations and for general corporate purposes.
RCI reported that its net loss in January to June P326 million, narrower from the previous year’s net loss of P554.2 million.
It was primarily driven by lower operating expenses, reduced finance costs following debt repayments, higher interest income from agrarian reform bonds and cash investments, and significantly lower losses from discontinued operations following the sale of plant assets in December last year.
It also recognized of a P285.7-million impairment loss on property and equipment.
The company said its focus for the year is to improving financial performance and cash flows through continued deleveraging, liquidity enhancement, operational efficiencies and cost discipline.
Growth initiatives include optimizing hotel operations, advancing real estate projects, implementing master plans for hacienda properties, and evaluating leasing and eco-tourism opportunities to maximize land utilization and long-term value creation.
The group maintained a positive liquidity position as of end June, with cash increasing to P759.1 million from P726.3 million as of December last year.
Cash resources were further supported by the current portion of agrarian reform bonds amounting to P469.1 million, providing adequate funding for operating requirements, capital expenditures and debt service obligations.
In a recent disclose to the Philippine Stock Exchange, RCI said its board has approved the sale of 278.3102 hectares of property in Nasugbu, Batangas ‘under such terms and conditions most beneficial to the company.’
RCI and its subsidiaries are engaged in the real estate and hotel development and management, property management, and coconut and exports. VG Cabuag