THE GOTIANUNS? residential property development arm, Filinvest Land Inc., has raised P5 billion from a recent retail offering of three-year and five-year bonds.

FLI announced Monday that it had issued P500 million worth of three year-bonds at a fixed interest rate of 7.5269 percent and P2.5 billion in five-year bonds at 8.4615 percent. The bond yields were set at the lower end of the price guidance based on bids from qualified institutional investors and underwriters.

Underwriters also exercised the P2-billion oversubscription option to take advantage of strong demand for the issue, which was three times oversubscribed. This brought the total issuance at P5 billion.

The bonds are intended to be listed in the fixed income exchange or the Philippine Dealing & Exchange Corp. (PDEx) to allow trading of the instruments in the secondary market.

The joint lead managers and underwriters for the bonds were BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. Co-lead underwriters were China Banking Corp. and RCBC Capital Corp.

Proceeds from the issue will be used for the development of various mass housing projects under FLI?s socialized, affordable and middle-income segments. Also to be funded are various mid-rise residential building projects in Metro Manila, Cebu and Davao, as well as the acquisition of land for future projects.

Debt watcher Philippine Rating Services Corp. (Philratings) has assigned the highest rating of PRS Aaa to FLI?s fixed-rate bonds. Issues rated PRS Aaa are deemed ?of the highest quality with minimal credit risk.?

Also, the obligor?s capacity to meet its financial commitment on the obligation is viewed as ?extremely strong.?