Filinvest Land plans P11-b bond sale

MANILA, Philippines–Property developer Filinvest Land is raising P11 billion from the sale of seven-year retail bonds in two tranches this year, thereby boosting fresh funds for expansion.

In a disclosure to the Philippine Stock Exchange on Tuesday, FLI said the first tranche, worth P7 billion would be issued within the second quarter of 2012 while the second tranche worth P4 billion would be issued in the third or fourth quarter of this year.

The issuance of these retail bonds will be subject to the approval of the Securities and Exchange Commission.

FLI has mandated BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp. as the joint issue managers. These three along with HSBC will likewise be the joint lead underwriters while affiliate East West Banking Corp. is the selling agent.

Proceeds from the issuance will be used to partially finance FLI’s capital expenditures for 2012, for which a budget of P15 billion was earlier reported.

The proposed P11 billion bond issue has obtained the highest rating of “PRS Aaa” from local credit watcher Philippine Rating Services Corp.

Philratings, in a statement, said this rating reflected the following key considerations: healthy growth of FLI’s real estate and leasing operations resulting in strong income generation; sound debt position and financial flexibility; established brand name and diversified portfolio; and the relatively favorable economic and industry conditions.

The local credit watcher has also maintained the PRS Aaa rating on FLI’s P500 million three-year bonds (due in November 2012) and P4.5 billion five-year bonds (due in November 2014) that were issued in November 2009, as well as the P3 billion five-year bonds (due in October 2016) that were issued on in July 2011.