Filinvest raises P8.8B from 10-year bond offering | Inquirer Business

Filinvest raises P8.8B from 10-year bond offering

/ 03:09 PM January 23, 2014


MANILA, Philippines — Gotianun-led conglomerate Filinvest Development Corp. has raised P8.8 billion from a retail offering of 10-year bonds, boosting funding for tourism and power generation ventures.

In a disclosure to the Philippine Stock Exchange on Thursday, FDC said the fixed rate bonds due 2024 were approved for listing on the local fixed income trading platform Philippine Dealing & Exchange Corp. (PDEX) on Friday (January 24).


These fixed-rate bonds were priced to yield 6.1458 percent per annum.


The Securities and Exchange Commission earlier authorized FDC to sell bonds with a base offer size of P7 billion bonds, with an option for oversubscription of up to P3 billion.

The bonds will be issued in minimum denominations of P50,000 each and in multiples of P10,000 thereafter.

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;
  • 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 would 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 in Boracay; and P3.26 billion to start development of a 405-megawatt power project in Misamis.


Filinvest launches P10-B bond offer

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Filinvest set to issue P10B in bonds

TAGS: Bonds, Business, disclosure, Filinvest Development Corp., fixed rate bonds, pdex, Philippine Dealing & Exchange Corp., Philippine Stock Exchange, Securities and Exchange Commission

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