Posted on May 27, 2012 10:22:54 PM [
BusinessWorld Online ]
REAL ESTATE firm Filinvest Land, Inc.
(FLI) starts selling today the first tranche of bond issue totaling P11 billion
to raise funds for capital spending this year.
“The offer period will be from May 28
to June 1, 2012, while the issue date has been set for June 8, 2012,” Filinvest
Land said in a statement over the weekend.
Last month, the developer said it will
be issuing seven-year bonds, with a first tranche worth P7 billion to be issued
within the second quarter and the second tranche worth P4 billion to be issued
either in the third or fourth quarter.
Filinvest Land’s first tranche of
bonds will have an interest rate of 6.2731% per annum and will be offered in
minimum denominations of P50,000 and increments of P10,000 thereafter.
Proceeds from the two-tranche bond
offer will be channeled toward the company’s P15-billion capital expenditure
for this year to bankroll the construction of 14 new projects and 19 additional
phases of existing residential, office, and retail projects.
BDO Capital and Investment Corp., BPI
Capital Corp., and First Metro Investment Corp. have been tapped as joint issue
managers, while Hongkong and Shanghai Banking Corp., together with the three
former firms, will serve as joint lead underwriters.
China Banking Corp. will serve as
co-lead underwriter while the Gotianuns’ banking arm, East West Banking Corp.,
will then act as selling agent for the proposed bond issuance.
Local debt watcher Philippine Rating
Services Corp. earlier assigned its top AAA ranking for these bonds, citing
Filinvest Land’s strong income generation, sound debt position, and
flexibility.
Last month, the listed real estate
firm said it was interested in expanding its core middle-income business in
high-growth areas in Visayas and Mindanao next year.
As of end-2011, the company held a
2,288-hectare land bank, 84% of which was located in areas of Mega Manila,
including the CALABARZON (Cavite, Laguna, Batangas, Rizal, and Quezon) area and
Bulacan province.
Filinvest Land realized a 20.74%
profit growth to P748.11 million in the first quarter versus year-ago levels
due to higher real estate sales and rental income for the period. -- Franz
Jonathan G. de la Fuente
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