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Filinvest raising funds via bond issue, share sale

/ 04:04 AM June 23, 2020

Gotianun family-led conglomerate Filinvest Development Corp. (FDC) plans to return to the local or offshore bond market while it considers widening its public ownership to unlock the value of its shares and boost funds for expansion.

Proceeds from a potential peso- or dollar-denominated bond offering will be used to finance the capital expenditure budget of P25.7 billion for this year.

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FDC president Josephine Gotianun-Yap said during the company’s stockholders’ meeting on Monday that it was important to maintain a balance between equity and debt.

The public owns 10.8 percent of FDC shares. The conglomerate, which has interests in property development, banking, sugar production and energy generation, is valued by the stock market at P70.22 billion.

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“We believe that providing liquidity and marketability with FDC shares will no doubt redound to the benefit of all the shareholders. We are awaiting the right timing for such an offering,” Yap said.

On the proposed foray into the debt market, Yap noted that just before Metro Manila was locked down by the government in mid-March, FDC was to launch an P8-billion peso-denominated bond offering. This was deferred due to the heightened economic uncertainties.

In April, she noted that FDC settled a $300-million offshore bond issued in 2013.

“We are now considering reviving our bond offering now that the [enhanced community quarantine] has been lifted,” Yap said.

On the P25.7-billion capital outlays budgeted for this year, 90 percent will go to the flagship property business.

Property arm Filinvest Land Inc. (FLI) is looking at constructing “high-specification” logistics structures for lease apart from the more traditional leasing of big lot parcels for factories.

The first phase of the Filinvest Innovation Park in New Clark City is due for completion by the second half of 2020. Another logistics park is set for launch in Calamba, Laguna, beside the fully sold Filinvest Technology Park.

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FLI is also launching a 20-hectare development to address the anticipated higher demand for ready-built warehouses of the growing logistics and e-commerce industry. ­—Doris Dumlao-Abadilla INQ

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