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Filinvest Land readies P11-B bonds

Posted on April 03, 2012 09:43:13 PM [ BusinessWorld Online ]

FILINVEST LAND, Inc. has moved to tap the bond market again, this time via fixed-rate bonds worth P11 billion to bankroll its capital expenditures for the year, a statement released yesterday showed.

The Gotianun-led real estate firm said it will be issuing the seven-year bonds in two tranches, with the first tranche worth P7 billion to be issued within the year’s second quarter, and the second tranche worth P4 billion to be issued either in the third or fourth quarter.

Proceeds from the bond offer will be used to finance the company’s P15-billion capex for this year, the statement read further.

BDO Capital and Investment Corp., BPI Capital Corp., and First Metro Investment Corp. have been tapped as joint issue managers, while Hong Kong and Shanghai Banking Corp., together with the three former firms, will serve as joint lead underwriters.

The Gotianun’s banking arm, East West Banking Corp., will act as selling agent for the proposed bond issuance.

Last month, Filinvest Land said it will be programming its 2012 capex for the construction of 14 new projects and 19 additional phases of existing residential, office, and retail projects worth a total of P14.5 billion.

In a related development, local credit ratings agency Philippine Rating Services Corp. (PhilRatings) assigned its top Prs AAA rating to the proposed bonds, a separate statement showed.

“The ratings assigned reflect the following key considerations: healthy growth of the company’s real estate and leasing operations resulting in strong income generation; sound debt position and financial flexibility; Filinvest Land’s established brand name and diversified portfolio; and the relatively favorable economic and industry conditions.”

In addition, Filinvest Land’s outstanding fixed-rate bonds worth P5 billion due in 2012 and 2014, as well as its P3-billion fixed-rate bonds due in 2016, also maintained their respective Prs AAA ratings, PhilRatings added.

Last month, Filinvest Land strengthened its presence in providing office space to business process outsourcing firms by acquiring a 1.2-hectare lot in Cebu City. It plans to build four office buildings on the site beginning early next year.

The company also expects to begin work on a 13th building at Northgate Cyberzone in the so-called Filinvest City, following the turnover of its 12th building early this year, while the construction of the five-storey, 10,000-square-meter Filinvest Building across the Asian Development Bank along EDSA is underway and is expected to be completed by the end of this year. -- Franz Jonathan G. de la Fuente

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