Filinvest launches P10-B bond offer
PHOTO FROM FILINVESTCITY.COM
MANILA, Philippines – Filinvest Development Corp. launched on Monday a retail offering of 10-year bonds to raise up to P10 billion to fund its tourism and power generation ventures.
FDC, in a statement, said the fixed-rate bonds were priced to yield 6.1458 percent per annum.
The offering will run until January 17 while issue date is on January 24 this year. The bonds will be issued in minimum denominations of P50,000 each but investors may buy additional bonds in multiples of P10,000.
The Securities and Exchange Commission has authorized FDC to sell bonds with a base offer size of P7 billion, with an option for oversubscription of up to P3 billion.
BPI Capital Corp. is the issue manager and is likewise a joint lead underwriter for the offering together with BDO Capital & Investment Corp., First Metro Investment Corp. and Standard Chartered Bank. China Bank is a co-lead underwriter and East West Banking Corp. is the selling agent.
Under an early redemption option, FDC will have the option but not the obligation to redeem in whole (and not in part) the outstanding bonds on the 7th, 8th and 9th year after issuance, based on an earlier regulatory filing.
Local credit watcher Philippine Rating Services Corp. earlier assigned the highest rating of PRS Aaa to FDC’s bonds, citing the following key considerations: the company’s steady earnings and diversified business portfolio; maintenance of a good credit standing even in times of financial crisis; strong financial flexibility; established brand names and good market position of main contributing subsidiaries; subsidiaries operate in growing industries which will benefit significantly from the supportive economic environment; conservative and professional stance of management and new investments (such as in power) seen to significantly boost profitability in the medium-term.
Based on an earlier regulatory filing, FDC said net proceeds from the offering will help finance projects to be implemented in early 2014.
FDC has earmarked P12.13 billion for capital spending for the first quarter of 2014 alone. In particular, FDC is budgeting the following for this period: P5.38 billion for repayment of loans; P3.5 billion to build a new Crimson Hotel on Boracay and P3.26 billion to start development of a 405-megawatt power project in Misamis.
Through unit FDC Hotels Corp., the group is currently planning and designing a five-star, 192-room Crimson Resort and Spa on Boracay. It plans to break ground upon the approval of its application for environmental compliance certificate with the Department of Environment and Natural Resources. Estimated completion is by end-2016.
For the power plant being developed by subsidiary FDC Utilities Inc., the first two units with a capacity of 270MW are expected to be commercially operational by 2016 while the remaining 135MW or the third unit is projected to come on stream by 2017.
