A MAJORITY owned subsidiary of listed Apollo Global Capital, Inc. has secured an up to P416-million credit line from the Development Bank of the Philippines (DBP) to start its iron ore production.
In a disclosure to the exchange on Monday, the company said its subsidiary JDVC Resources Corp. was given an export packing credit line to serve as a pre-shipment financing facility for its capital requirements.
“[The] credit line is expected to successfully jump start the commercial and profitable operations of [Apollo Global] through its 90.47%-owned subsidiary JDVC and pave the way for the realization of increased shareholder value,” it said.
The credit line will have a floating interest based on the lender’s prevailing rate, and will be payable at maturity or upon negotiation.
As security, Apollo Global has pledged 10.5 billion company shares worth P525 million to the DBP. The shares are owned by Daniel Chua Go, who owns 45.63 billion shares in Apollo Global as of end-2019.
JDVC will pay for the credit through transferring to the DBP all its rights, title to and interest in the receivables from its letters of credit amounting to 80% of its loan value.
JDVC is Apollo Global’s subsidiary that was formed to explore and operate mines for ores and minerals. Apollo Global was originally engaged in internet-related products, but changed its primary purpose in 2016 to be a holding company.
Shares in Apollo Global at the stock exchange inched up 0.1 centavo or 1.59% to 6.4 centavos each on Monday. — Denise A. Valdez