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Gotianun holding firm eyes P10-B bond issue

Posted on November 12, 2013 10:26:00 PM [  BusinessWorld Online ]

FILINVEST Development Corp. (FDC) is looking to raise P10 billion from bonds, the company said in a disclosure yesterday.

“FDC will be offering P10 billion fixed-rate retail bonds,” the company said.

“The bonds, with a tenor of 10 years, are planned for offer in January 2014 once regulatory approval has been secured.”

The bonds will be issued in minimum denominations of P50,000 and increments of P10,000 thereafter.

“The proceeds of the bonds will be used to fund the group’s various investments, such as -- but not limited to -- real estate and power generation,” the company said.

BPI Capital Corp. has been appointed the transaction’s issue manager.

It will join BDO Capital and Investment Corp., First Metro Investment Corp. and Standard Chartered Bank as joint lead underwriters. East West Banking Corp. will act as selling agent.

The planned bond sale bagged top credit grade from Philippine Rating Services Corp. (PhilRatings).

“The proposed bond issuance of FDC was assigned an issue credit rating of PRS Aaa by PhilRatings,” the local debt watcher said in a separate statement.

Obligations rated PRS Aaa are considered of highest quality with minimal credit risk, with the issuer’s capacity to meet its financial commitment on the debt deemed “extremely strong.”

The rating, the local debt watcher said, took into account the company’s steady earnings and diversified business, maintenance of a good credit standing even in times of financial crisis, strong financial flexibility, established brand names and good market position.

The company has interests in property (Filinvest Land, Inc.), banking (EastWest) and power (FDC Utilities, Inc.)

Filinvest Land last week raised P7 billion from a bond sale to bankroll its P27.3-billion capital expenditures next year.

FDC’s net income rose 26.09% to P3.19 billion in the first half from P2.53 billion in the same six months last year. Revenues and other income grew 29.59% to P18 billion from P13.89 billion, while costs increased by 9.37% to P6.07 billion from P5.55 billion and operating expenses rose 56.9% to P8.30 billion from P5.29 billion.

Shares of FDC surged 26 centavos or 6.21% to close P4.45 apiece yesterday from P4.19 last Monday. -- C. H. C. Venzon            
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