A Brown Company, Inc. has secured an investment-grade credit rating ahead of its planned maiden bond issuance, signaling market confidence as it taps debt markets to fund expansion across real estate and renewable energy.
The company received a PRS A plus rating with a stable outlook from Philippine Rating Services Corp. (PhilRatings), indicating strong capacity to meet financial obligations and positioning the planned issuance in the upper-medium grade category.
The rating comes as A Brown files to raise up to P5 billion through fixed-rate peso bonds, including a base offer of P3 billion and an oversubscription option of up to P2 billion. The issuance forms part of its P12-billion shelf registration with the Securities and Exchange Commission.
The bonds will be issued in two tranches, with maturities in 2029 and 2031, and are expected to be listed on the Philippine Dealing & Exchange Corp.. Proceeds will be allocated to renewable energy investments, residential project development, redemption of preferred shares, and general corporate needs.
PhilRatings cited A Brown’s established presence in Mindanao’s real estate market, its expansion into Luzon, and its relatively conservative balance sheet as key strengths supporting the rating. The agency also noted improving revenues driven by stronger property sales and adequate liquidity.
The planned issuance reflects a broader trend among mid-sized developers diversifying funding sources amid rising capital requirements and higher interest rates. By securing an investment-grade rating, A Brown gains better access to institutional investors while potentially lowering borrowing costs.
PNB Capital and Investment Corp. will act as sole issue manager, alongside Land Bank of the Philippines as joint lead underwriter and bookrunner.
The bonds are targeted for issuance on July 3, marking A Brown’s first foray into the domestic bond market as it scales up investments beyond its traditional property base.
