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SEC okays Filinvest Land’s P11-B bond issuance

Posted on May 18, 2012 07:53:27 PM [ BusinessWorld Online ]

FILINVEST LAND, Inc. has earned the corporate regulators’ approval to issue fixed-rate bonds worth P11 billion to bankroll a portion of its capital expenditure this year, a Securities and Exchange Commission (SEC) document showed on Friday.

Following an en banc meeting on Thursday, the SEC endorsed the Gotianun-led developer’s earlier-announced bid to roll out 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, the document read.

Proceeds from the bond offer will be used to finance the company’s P15-billion capex for this year, earlier reports said.

BDO Capital and Investment Corp., BPI Capital Corp., and First Metro Investment Corp. have been tapped as joint issue managers and will serve as joint lead underwriters along with Hong Kong and Shanghai Banking Corp.

The Gotianun’s banking arm, East West Banking Corp., will 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 reportedly strong income generation, sound debt position, and financial flexibility.

Filinvest Land, formerly known as Citation Homes, Inc., was incorporated in 1989 to engage in real estate development, with business segments divided into real estate and leasing segments.

Last month, the Gotianun-led 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.

For the year, Filinvest Land will launch 12,100 units among 14 new projects, with nearly 40% of which to come from the socialized sector, versus 6,500 units from 11 new projects launched last year.

Filinvest Land realized a 21% hike in its net income to P748 million for the January to March period this year versus P620 million last year

Total first quarter revenues amounted to P2.73 billion, up 41% from P1.93 billion last year, buoyed by a 50% jump in real estate sales to P2.04 billion from P1.36 billion last year, and a 14% uptick in rental income to P410 million versus P359 million, year on year.

Filinvest Land shares dipped by 0.79% to P1.26 apiece on Friday from P1.27 at its previous close. -- Franz Jonathan G. De La Fuente

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