MANILA, Philippines—The Securities and Exchange Commission has approved a seven-year retail bond issue worth P11 billion planned by Filinvest Land Inc., which is raising fresh funds for expansion projects this year.
The FLI bonds will be offered in two tranches beginning with a P7 billion issuance on June 8 while the remaining P4 billion will be issued by the third quarter, according to documents from the SEC.
The seven-year bonds will carry a fixed interest rate equivalent to comparative PDST-F rate plus a spread of 60 to 125 basis points. The indicative rate is a range of 5.7658-6.4158 percent per annum for the first tranche. Interest on the bonds due 2019 will be payable quarterly.
Proceeds from offering will partially finance projects to be undertaken by the company in 2012, during which FLI has set a capital spending budget of P14.9 billion.
The projects to be funded by FLI are broken down as follows: high-rise projects in Metro Manila and Cebu (P1.95 billion); medium-rise projects in Metro Manila, Davao City and Rizal (P5.45 billion); investment properties in Metro Manila, Cavite and Cebu City (P3.87 billion); subdivisions in Metro Manila, Cavite, Cebu City and other provinces (P3.08 billion); and, land acquisition in Rizal, Pasig, Cebu and Quezon City (P538.33 million).
BDO Capital, BPI Capital, First Metro Investment Corp. and HSBC are the joint lead underwriters of the offering.
A minimum purchase of P50,000 shall be considered for acceptance. Purchases in excess of the minimum shall be in multiples of P10,000.
The proposed P11 billion offering was rated triple-A by local credit watcher Philippine Rating Services Corp. which cited the following factors: healthy growth of real estate and leasing operations resulting in strong income generation; diversified portfolio; sound debt position and financial flexibility; established brand name; and favorable economic and industry conditions.