Filinvest Land offering 7-yr bonds

Gotianun-led property developer Filinvest Land Inc. (FLI) has launched an offer to sell seven-year bonds to retail investors at an interest rate of 6.2731 percent per year.

FLI aims to raise up to P7 billion from this offering, representing the first tranche of the P11-billion bond issue earlier approved by the Securities and Exchange Commission.

The offer period starts on May 28 and ends June 1, while issue date was set for June 8.

BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp. are the joint issue managers. The three, with Hong Kong Shanghai Banking Corp., are also the joint lead underwriters. China Bank is the co-lead underwriter while East West Bank is the selling agent.

The bonds will be issued in minimum denomination of P50,000 and increments of P10,000.

Proceeds from the bond sale will be used to partly finance FLI’s capital expenditure for 2012. Earlier this year, FLI said its capex budget this year was P15 billion.

FLI plans to launch P14.5 billion worth of residential units from 14 new projects and 19 additional phases of existing projects this year. It is also constructing a BPO office building along EDSA, Mandaluyong City, with a gross leasable area of 7,000 square meters and a building in Northgate Cyberzone with a GLA of 20,000 sqm. Construction of another building, called Plaz@, E will start within the year.

The company will also break ground on a 15,000-sqm BPO office building in Lahug, Cebu, this month.

In the meantime, the expansion of Festival Supermall in Filinvest City and the development of the Il Corso lifestyle strip in Citta di Mare in South Road Properties Cebu are both under way.

Philippine Rating Services Corp. has assigned a PRS ‘Aaa’ rating to the bonds, the highest possible rating for a bond issue. The credit watcher cited the following as basis for the rating: healthy growth of the company’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.