Filinvest Land launches P12-B bond offer
MANILA -Gotianun-led property giant Filinvest Land Inc. launched a P12-billion debt offer on Thursday, which involves the sale of 3.5-year fixed-rate notes paying an interest rate of 6.983 percent per year.
The offer period will run from Nov. 16-22 this year and the notes will be listed on the Philippine Dealing & Exchange Corp. on Dec. 1, 2023, the developer said in the final deal prospectus.
Filinvest Land said on Friday it obtained the permit to sell the bonds from the Securities and Exchange Commission.
The sale involves a base offer size of P10 billion plus a P2-billion oversubscription option to cover excess demand.
Filinvest Land, part of the Gotianun family conglomerate Filinvest Development Corp., is one of the country’s leading real estate firms with a development track record spanning 2,500 hectares of land over 50 years.
Assuming the exercise of the overallotment option, Filinvest Land aims to use the proceeds to partly finance the redemption of the P6.3 billion fixed-rate bonds it issued three years ago.
Another P7.85 billion will be used to bankroll ongoing capital spending for land development and construction costs for its various projects.
The debt sale is part of the builder’s P35 billion bond program, which was recently registered with the SEC.
Filinvest Land tapped eight investment banks as joint underwriters and bookrunners for the sale.
These were BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp.
READ: Filinvest Land gets top credit rating for planned P12-B bond offering
Filinvest Land earlier reported that profits during the first nine months of the year rose 22 percent to P2.44 billion while revenues climbed 11 percent to P15.7 billion.
During the nine-month period, residential revenues grew 9 percent to P9.83 billion as the company ramped up the construction of its various housing and medium-rise projects.
READ: Brisk property sales, mall revenues push up FLI profit
It also launched a total of P6.6 billion worth of projects in Rizal, Laguna, Pangasinan, Cebu, Davao, South Cotabato, and Zamboanga.
The company’s shopping mall segment also saw revenues climb 57 percent to P1.75 billion during the period.
