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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