Posted on March 31, 2011 10:39:19 PM [ BusinessWorld Online ]
FEDERAL LAND, Inc., the property arm of the Metrobank group, generated more than P6.6 billion after issuing notes to local banks, its financial advisor said in a statement yesterday.
Fresh capital from 18 investors will allow the property developer to bankroll more than 20 ongoing projects.
“The issue was subscribed to by 18 participating lenders, which were a mix of banks, trust companies and mutual funds,” said notes sale arranger First Metro Investment Corp. (FMIC), which is also the investment banking arm of the Metrobank group.
“Strong demand from these institutions convinced Federal Land to exercise its option to increase the size of the offer to P6.6 billion from the original P5 billion,” it added.
Federal Land sold five-year fixed-rate corporate notes.
“This landmark transaction gives us a clear indication of investors’ confidence in both Federal Land and the Metrobank group in general,” Jose Mari H. Banzon, executive vice-president and general manager of Federal Land, said in the same statement.
Federal Land has more than 20 ongoing developments, which include The Grand Midori in Makati, The Capital Towers in Quezon City, The Peninsula Garden in Paco in Manila and the Riverview Mansion and the Four Seasons Riviera, both high-end developments in Binondo in Manila.
Last week, Federal Land launched its $300-million, 66-storey Grand Hyatt Hotel in Taguig City.
Shares in listed FMIC, which was also founded in 1972, were last traded on March 24 at P44.90 each. -- Neil Jerome C. Morales
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