By Zinnia B. Dela Peña (The Philippine Star) Updated April 09, 2010 12:00 AM
MANILA, Philippines - The Philippine Dealing and Exchange Corp. (PDEC) has approved the listing by Filinvest Land Inc. (FLI) of P9.5-billion bonds on the fixed-rate income exchange on April 16.
Of the total issue, P5 billion will mature in November 2012 while the remaining P4.5 billion will be due on November 2014.
The bonds had been assigned the highest rating of PRS Aaa by credit rating services agency PhilRatings.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
The rating took into consideration the strong growth of FLI’s real estate and leasing operations, its improving cash generation, conservative debt position, and financial flexibility.
FLI expects renvenues of P8.6 billion from the launch of 13 new projects and 23 additional phases across all its market segments.
To be introduced are four new socialized housing projects in Cavite, Batangas and Bulacan as well as two new affordable housing projects also in Batangas and Cavite.
Last year, FLI introduced seven new projects and undertook the expansion of 23 existing projects valued at P6.4 billion, bringing the company’s total ongoing projects to 77.
FLI is hoping to break ground in 2010 for Citta de Mare, its flagship development within the South Road Properties (SRP) in Cebu City. Land development will commence soon on the 10.6 hectares earmarked for a mixed-use development, as well as on the first of the residential buildings within the 40 hectares allocated for residential use.
As of end-December 2009, FLI had a sizable land bank of 2,433 hectares which will enable the company to continue to launch new projects to meet future market demand.
FLI reported a net income of P2.018 billion last year, eight percent higher than the P1.867 billion recorded in 2008. Total revenues, excluding equity in net earnings, rose eight percent to P5.64 billion on the back of a five percent growth in real estate sales.
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