MANILA, Philippines?Tycoon George Ty?s privately held property development arm Federal Land Inc. has raised P6.6 billion from the issuance of debt paper to selected institutional investors.

In a statement on Thursday, Federal Land announced the issuance of five-year fixed rate corporate notes. This was the very first time the property development company tapped the domestic capital market, proceeds from which are expected to fund expansion plans.

The sale of debt paper was solely arranged by the Metrobank group's investment banking arm First Metro Investment Corp.

The issue was subscribed to by 18 participating lenders, which were a mix of banks, trust companies and mutual funds. Strong demand from these institutions convinced Federal Land to exercise its option to upsize the offer to P6.6 billion from the original P5 billion.

?We are very happy with the capital market?s positive reception of the notes issue. This landmark transaction gives us a clear indication of investors? confidence in both Federal Land and the Metrobank Group in general.? said Jose Mari Banzon, executive vice president and general manager of Federal Land.

Established in 1972 under the name Federal Homes, the company has since then established a reputation as one of the country?s leading vertical developers. Some of its notable projects include GT Tower International, Phil AXA Tower and Skyland Plaza in Makati City; The Oriental Garden Complex in Makati, Marquinton Residences in Marikina; Bay Garden Complex in Macapagal and the Marco Polo Plaza Hotel in Cebu.

Federal Land has more than 20 ongoing developments that include the The Grand Midori Makati; The Capital Towers in Quezon City, The Peninsula Garden in Paco, Manila and the Riverview Mansion and the Four Seasons Riviera, both high-end developments in Binondo, Manila.

Recently, the company launched The Residences, a high-rise project located just beside the Marco Polo Plaza Hotel, Cebu. It also recently unveiled the prestigious 66-storey Grand Hyatt Hotel to be erected in Fort Bonifacio.

Federal Land recently obtained the "Developer of the Year" award from the Chamber of Real Estate and Builders Association.