By Zinnia B. Dela Peña (The Philippine Star) Updated November 09, 2009 12:00 AM
MANILA, Philippines - Filinvest Land Inc. (FLI), the real estate arm of the Gotianun family, obtained the Securities and Exchange Commission’s nod to issue up to P5 billion worth of three-year and five-year fixed-rate bonds.
FLI registered with the SEC a total of P3 billion worth of bonds with an option to increase the issue size to P5 billion, depending on market demand. BPI Capital Corp., BDO Capital and Investment Corp. and First Metro Investment Corp. will serve as joint lead managers and underwriters for the issue.
BPI Capital Corp., BDO Capital and Investment Corp. and First Metro Investment Corp. will serve as joint lead managers and underwriters for the issue.
FLI has set aside P2.3 billion out of the expected total proceeds from the offering for the construction of various medium-rise buildings in Metro Manila, Cebu and Davao and a high-rise building in Makati. Another P2 billion will go to the development of various mass housing projects.
The remaining P700 million will be used to expand its landbank – P270 million for the South Roads project in Cebu, P124 million for a property in Ortigas, P143 million for a property in Cebu, and P163 million for a property in Sta. Mesa, Manila. These properties will be developed into MRBs.
The bond issue was given the highest rating of PRS Aaa by credit ratings agency PhilRatings. The rating means that the borrower’s capacity to meet its financial commitments is extremely strong.
In assigning the rating, PhilRatings took into account FLI’s improving net cash, its diversified portfolio; resilience as enhanced by its continued focus on the mass housing segment; the steady growth in its real estate and leasing operations; its sound debt position and strong financial flexibility; and favorable industry conditions.
From 2009 to 2016, FLI expects to register continued growth in revenues, primarily driven by its affordable and middle-income segments. In the first half this year, the company posted a net income of P759 million or 6.27 percent higher than the previous level. Total revenues rose 9.7 percent to P2.16 billion on the back of higher real estate sales and rental revenues.
FLI has set a P5.3 billion capital budget this year, up 29 percent from the P4.1 billion spent in 2008.
The company is rolling out 29 new projects and phases this year, estimated to generate P7.4 billion in sales across all market segments.
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