Gotianun-led property developer Filinvest Land Inc. (FLI) has raised P10 billion from the issuance of new local retail bonds which were warmly received by domestic investors.
The offering of four- and six-year peso fixed-rate bonds was oversubscribed by four times the base offer, FLI disclosed to the Philippine Stock Exchange on Tuesday.
The bonds due 2025 carry an interest rate of 4.503 percent per annum, while the bonds due 2027 carry 5.2579 percent per annum.
FLI’s newest bonds attained the highest “PRS Aaa” rating from the Philippine Rating Services Corp. and were listed on the Philippine Dealing & Exchange Corp. on Monday.
Based on FLI’s prospectus, about P5.3 billion of the net proceeds will be used by FLI to repay maturing bonds with coupon rate of 5.4 percent per annum maturing this December. The rest will be used for capital outlays for residential, mixed-used estate and office developments alongside new land acquisitions.
Growing portfolio
“FLI is growing its recurring income portfolio particularly in the logistics/industrial and office space. In addition, we continue to provide the housing requirements of our fellow countrymen as we help build the Filipino dream,” FLI president and CEO Josephine Gotianun-Yap said.
“FLI is encouraged by the performance of the residential sector in the first nine months of the year with residential revenues increasing by 23 percent, we are hopeful that we are on the way to economic recovery,” she added.
This latest bond issuance is the second tranche out of FLI’s P30-billion bonds registered in 2020 under the shelf-registered program of the Securities and Exchange Commission.
The last time that FLI drew from this shelf registration was on Nov. 18, 2020, when it issued P8.1 billion worth of bonds.
Underwriting team
For this latest issuance, BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. acted as the joint lead underwriters and bookrunners. RCBC’s trust and investments group served as the trustee.
In the first nine months, FLI recorded a net income attributable to equity holders of the parent company of P3.2 billion, up 21 compared to the same period last year, primarily due to lower income tax as a result of newly enacted Corporate Recovery and Tax Incentives for Enterprises law. The property developer also cited an improving business environment and the strong performance of its residential business segment.