Filinvest Development readies P10-B bond offering

MANILA  -Gotianun-led conglomerate Filinvest Development Corp. (FDC) is preparing to launch a P10-billion bond sale in 2024 to bankroll renewable energy, water and hospitality investments and repay debts.

In a deal prospectus dated Nov. 17, FDC said the bond offer period will run from Jan. 15 to 19 next year. The target issue date is Jan. 30, 2024.

The bond sale will involve a P7-billion base offer and a P3-billion oversubscription option, the prospectus showed.

FDC said up to P6.9 billion of the proceeds will be used to partially redeem its P8.8 billion worth of fixed-rate bonds issued in 2014.

Another P3 billion will be used for capital expenditures for various renewable energy and water projects set for completion between 2025-2027 and hospitality projects, which will be completed from 2026 to 2027.

“In addition to the net proceeds of this offer, the company intends to utilize internally generated funds considering that the projected total funding requirement is greater than the net proceeds of the offer,” said FDC, whose portfolio spans banking, property development, sugar and infrastructure.

FDC said the bonds will be issued under its three-year P32 billion bond program.

The company tapped seven banks as joint lead underwriters and book runners. These were BDO Capital & Investment Corp., BPI Capital, China Bank Capital Corp., East West Bank, First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp.

The upcoming bond sale will be issued in minimum denominations of P50,000 and in multiples of P10,000 thereafter.

FDC earlier announced a 57 percent profit spike during the first nine months of the year to P5.9 billion. Revenues during the period also climbed 26 percent to P64.6 billion.

The company’s total capital spending for the year was set at P35 billion, with half of the amount gong to real estate and hospitality projects.