Filinvest to list P3B in bonds

Property firm Filinvest Land Inc. has obtained approval to list P3 billion worth of bonds due in 2016 on the country’s fixed-income securities exchange.

The company plans to list its five-year and three-month bonds with a yield of 6.1962 percent, which will mature on Oct. 7, 2016, on the Philippine Dealing and Exchange Corp. (PDEX) board this Nov. 29.

“The PDEX approval paves the way for the secondary market trading of the bonds,” the Gotianun-led real estate developer said in a disclosure yesterday.

Listing on PDEX will give interested investors the chance to buy the Filinvest Land notes from current bondholders who, in turn, may want to liquidate their holdings.

Filinvest issued the bonds last July. Due to strong demand at the time, the company said the bond issue was twice oversubscribed. Philippine Rating Services Corp. (PhilRatings) earlier assigned the highest rating of PRS Aaa for the issue.

The bonds were issued in P50,000 and P10,000 denominations. Unicapital Inc. served as the issue manager and underwriter for the bond issue. The selling agent was East West Banking Corp., the Gotianun family’s banking arm.

Proceeds from the debt sale were to be used for the company’s capital expenditure (capex) requirements for 2011. Filinvest earlier disclosed that its capex budget for 2011 was at P12 billion, more than double the P5-billion capex in 2010.

The company plans to sell more than 14,000 residential units this year, almost double the 2010 level. This entails the rollout of 17 new projects and 24 additional phases of existing projects. FLI also plans to put up two new office buildings and a chain of affordable hotels.

FLI’s business segments are divided between real estate and leasing. The real estate segment is primarily composed of socialized, affordable, middle income, high-end housings, entrepreneurial communities, townships, residential farm estates, private membership club, residential resort development, medium and high-rise buildings, and condotels.