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FLI kicks off bond offer today

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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