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SEC gives its okay to Filinvest bond sale

Posted on August 04, 2015 09:13:00 PM [ BusinessWorld Online ]

FILINVEST Land, Inc. (FLI) secured a go signal from the corporate regulator to launch an P8-billion bond sale.
The Securities and Exchange Commission (SEC) cleared the Gotianun-led property developer’s debt issuance during its en banc meeting yesterday, but “with conditions,” Armando A. Pan, Jr., officer-in-charge of the Office of the Commission Secretary, said in an interview. He declined to elaborate.

FLI plans to offer P5-billion worth of unsecured fixed-rate retail bonds with an over-subscription option of up to P3 billion, the company said in its registration statement on June 15.

Net proceeds of as much as P7.91 billion from the sale of seven- and 10-year bonds will be used to refinance liabilities and finance the development of its residential, commercial and office leasing projects.

The bonds are intended to be listed at the Philippine Dealing and Exchange Corp.

BPI Capital Corp., BDO Capital & Investment Corp. and First Metro Investment Corp. were tapped as the joint issue managers, joint bookrunners and joint lead underwriters.

The latest issuance marks FLI’s return to the bond market after raising P7 billion from the sale of seven-year fixed-rate bonds due 2021 and 2024 in November last year.

The real estate firm hiked its capex budget to P24 billion this year from P15 billion in 2014, with plans to launch P16.2 billion worth of residential projects.

The company is targeting to triple its gross leasable area to 966,000 square meters by 2019 from 343,000 last year.

FLI’s consolidated net income went up by 15% to P1.24 billion in the first quarter from P1.08 billion in the same period last year, on the back of a 17% uptick in revenues.

FLI is a subsidiary of Filinvest Development Corp., the holding firm for the Gotianun family’s businesses in banking, hotel, power, and sugar farming and milling.

FLI shares shed six centavos or 3.02% to close at P1.93 each. -- Krista Angela M. Montealegre

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