FLI completes P8-B retail bond float

Gotianun-led property developer Filinvest Land Inc. (FLI) has completed an P8-billion retail bond float, proceeds from which will be used for its expansion program.

The newly issued seven- and 10-year peso fixed-rate bonds were listed on fixed income trading platform Philippine Dealing and Exchange Corp. on Thursday.

The bonds due 2022 and 2025 were oversubscribed by almost thrice the base amount of P5 billion, enabling the company to exercise the P3 billion oversubscription option approved by the Securities and Exchange Commission, FLI said in a statement.

The bonds were given the highest “PRS Aaa” rating from local credit watcher Philippine Rating Services Corp.

FLI president Josephine Gotianun-Yap said the fresh funding tapped from the bond market would allow the company to set aside more than P20 billion for capital spending for the next 15 months as it aimed for rapid and sustainable growth.

“With this bond issuance, FLI is now in full-gear for office and retail space expansion. We are tripling our office and retail rental portfolio to hit close to one million square meters of gross leasable area in the next five years. We tap the long-term bond market to match our funding sources with our project horizons,” said Gotianun-Yap.

“FLI will also spend on residential developments and selective land acquisition. Filinvest Land continues to focus on its core markets – first-time homebuyers and ultimate end-users.

“By focusing on Oasis and Spatial medium-rise buildings and the Futura affordable housing projects, the majority of our projects serve our core markets and have construction cycles of one year or less for faster revenue recognition and less exposure to construction cost risk,” Gotianun-Yap said. Doris Dumlao-Abadilla