Filinvest Land Inc., the property unit of the Gotianun Group, said Tuesday it raised P10 billion from the issuance of fixed-rate bonds.
FLI said in a disclosure to the stock exchange the offering was more than four-times oversubscribed over the base amount of P8 billion, which enabled it exercise the P2-billion over-allotment option.
Net proceeds from the offering will be used to fund capital expenditure program for 2022 and repay maturing debt.
“FLI is growing its recurring income portfolio particularly in the logistics/industrial and office space. In addition, we continue to provide the housing requirements of our fellow countrymen as we help build the Filipino dream,” FLI president and chief executive Josephine Gotianun- Yap said.
“FLI is encouraged by the performance of the residential sector in the first nine months of the year with residential revenues increasing by 23 percent. We are hopeful that we are on the way to economic recovery,” she said.
The issuance consisted of four-year bonds due 2025 with interest rate of 4.5030 percent and six-year bonds due 2027 with interest rate of 5.2579 percent per annum.
The bonds, which were listed on the Philippine Dealing & Exchange Corp. Tuesday, received the highest PRS Aaa rating from the Philippine Rating Services Corp.
It was the second tranche out of the company’s P30-billion bond shelf registration program approved by the Securities and Exchange Commission in 2020.
FLI is one of the leading real estate developers in the country. As of July 2021, the group was operating 31 office buildings totaling 524,188 square meters and 256,830 sq. m. of leasable space in the retail portfolio.
It also owns a residential land bank of 1,872.80 hectares for sustainable future growth.
The company mandated BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp, East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp and SB Capital Investment Corp. as joint Lead underwriters and book runners to manage the public offer and issuance.