Thursday, February 12, 2009 [ manilatimes.net ]
FILINVEST Development Corp. (FDC) announced on Wednesday that it would raise funds through the sale of corporate notes.
In a disclosure to the Philippine Stock Exchange, the Gotianun-led holding firm said the board has approved the issuance of up to P2.5 billion corporate notes to raise new capital.
In November last year, FDC also approved the issuance of peso-denominated corporate notes of up to P3 billion and tapped Hong Kong Shanghai Banking Corp. Ltd. to be the lead manager.
The company said the fresh capital may either be used to settle debts or fund projects.
Earlier, FDC’s unlisted banking arm, East West Bank, won the bid to acquire AIG-Philam Savings Bank.
With the merger, East West Bank will become the sixth largest credit card issuer in the country in terms of cards-in-force and card receivables. The merger would boost its assets to P63 billion from P49.924 billion as of 2008 and expand its credit card business from its current credit card receivables at P3.7.
East West will also acquire Philam Auto Finance & Leasing Inc. and PFL Holdings Inc.
Meanwhile, FDC’s subsidiary, Filinvest Land Inc. (FLI) accepted the city government of Cebu’s offer to be part of unincorporated joint venture to develop a 50.6-hectare land at the South Road Properties.
Upon the approval of the city council of Cebu, Andrew Gotianun Jr., FLI vice chairman, will go into a deal agreement for the project, the disclosure read.
FLI, earlier, proposed contracts to the Cebu government, first of which covers the purchase of a 13-hectare lot for P2 billion at the South Road Properties. The second involves the development of 35-hectare lot across the prime property into a mixed-use commercial project, which will have recreational facilities, residential condominium buildings and IT buildings.-- Chino S. Leyco
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