MANILA, Philippines - Local grocer Puregold Price Club Inc. has raised P5 billion through a notes facility agreement to fund expansion projects and acquisitions.

The issue date for the corporate notes will be on Oct. 24, Puregold said in a disclosure on Monday. 

The facility is composed of P4-billion worth of five-year and one-day notes carrying an interest rate of 5.4481% per annum, and P1-billion worth of seven-year notes priced at 5.8673% per annum.

"Proceeds from the maiden PGOLD offering in the domestic debt capital market are earmarked for the expansion projects of PGOLD for 2013: P3 billion are budgeted for the 25 new stores targeted to be opened in 2013 and P2 billion are for mergers and acquisitions," the firm said.

Puregold noted that during the bookbuilding process, total subscription to the facility reached over P11 billion.

First Metro Investment Corp. is the sole arranger and bookrunner for the transaction. Metropolitan Bank and Trust Company's Trust Banking Groups is the notes facility agent, while Sycip Salazar Hernandez and Gatmaitan Law Offices is the transaction counsel.

The grocery chain earlier this year said it is eyeing to end the year with 31 new Puregold stores, more than the original full-year target of 25 new stores. The firm debuted in the local stock exchange in October last year.