MANILA —Filinvest Development Corp (FDC) has secured the Securities and Exchange Commission’s approval for its P10-billion fixed rate bond issuance, comprising a base offer of P7 billion and an oversubscription option of up to P3 billion.
The issuance, scheduled for Feb 7, 2024, is the first tranche of the company’s new three-year shelf registration amounting to ₱32 billion.
The bonds were recently assigned a credit score of PRS Aaa, the highest rating conferred by PhilRatings, indicating FDC’s strong capacity to meet financial commitments. It was also given a “stable outlook” with Philrating’s view that the ratings will likely remain unchanged in the next 12 months.
READ: FDC bonds, Dagupan Electric IPO get SEC nod
Proceeds from the bond issuance will be used to partially finance the company’s maturing bonds amounting to ₱7 billion and fulfill capital expenditure requirements totaling ₱3 billion.
“The approval of our bonds paves the way for an enticing and stable investment opportunity for investors while funding the company’s expansion,” said FDC President and CEO Rhoda A. Huang. “We are pleased that PhilRatings has assigned a PRS Aaa rating to our proposed bond issuance. This rating is reflective of our current financial performance and underscores our commitment to drive growth through our diverse business holdings.”
According to Philratings, key considerations in assigning the Issue Credit Ratings were FDC’s conservative and professional management, the proven track record and established brand names of its main contributing subsidiaries, and its stable revenue stream from its diversified business portfolio.
READ: Filinvest Development 9-month profit grows 57% to P5.9B
The Filinvest Group reported a 57-percent increase in net income attributable to equity holders of parent company to P5.9 billion for January to September 2023 from P3.8 billion a year ago.
Growth was propelled by a 26-percent increase in revenues and other income to P64.6 billion in the same period from P51.1 billion in the first nine months of 2022.