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It seems that lately, the most effective way to raise much needed funds is via retail bond offering, and many corporations have trekked this path to gain additional funds for their expansions and other purposes.

The latest to seek this opportunity is the holding company of the Gokongwei family. The JG Summit Holdings Inc. is seeking the approval of the Securities and Exchange Commission (SEC) for them to raise as much as P10 billion from a retail bond offering.

JG Summit had filed a registration statement with the SEC in relation to the proposed issuance of retail bonds in the amount of P5 billion, with an option to increase it by another P5 billion, as stated in its disclosure to the Philippine Stock Exchange (PSE).

The company is eyeing ING Bank N.V. and SB Capital Investment Corp. as its joint issue Managers.

“The company has applied for credit rating the Philrating in connection with the proposed bond offering,” the disclosure said. Philrating is the Philippines Rating Services Corp.

The proceeds for the sale of the issued bond, said the company, would be used to support the capital expenditure requirement of its subsidiaries and for “general corporate purposes.”

JG Summit’s retail bond offering comes after the successful P10-billion domestic bond issuance undertaken by its property unit the Robinsons Land Corp., as well as the P3 billion sale of corporate notes by food unit Universal Robina Corp. early this year.

JG Summit has been consulting with banks about its retail bond offer.

The company has diversified business interest, which include branded consumer foods, agro-industrial and commodity food products (Universal Robina), real property development, hotels (Robinsons Land), banking and financial services (Robinsons Savings Bank), telecommunications (Digitel), petrochemicals (JG Summit Petrochemical Corp.), air transportation (Cebu Pacific Air) and even power generations.

JG Summit also has branded food businesses in China and parts of Southeast Asia.