Filinvest Land Inc. (FLI), the real estate arm of the Gotianun family, reported Friday that its planned P12-billion bond offering received ‘PRS Aaa’ from the Philippine Rating Services Corp. (PhilRatings).
A credit rating of PRS Aaa means that the offering if of the highest quality with minimal credit risk and that the issuer’s has the financial capability to meet its financial commitment on the obligation is extremely strong.
The rating also carries a stable outlook, which means that PhilRatings is not likely to change its decision within the next 12 months.
“We are grateful to PhilRatings for the credit rating they issued for our most recent bond issuance. This is a testament to the confidence of the capital market community in our vision of continuing to provide best-value homes to more customers and improve their lifestyles in pursuit of the Filipino dream,” said FLI president and chief executive Tristan Las Marias.
FLI’s proposed P12-billion bonds have a base amount of P9 billion and an oversubscription option of P3 billion.
Pricing for the bonds will be set in the coming months. FLI intends to list the bonds with the Philippine Dealing and Exchange Corp. (PDEx).
Philratings said it considered FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion.
It also noted that FLI has sound growth strategies and solid foothold in the affordable and middle-income segments. More than 85 percent of the company’s total real estate sales were from the middled-income segment as of end-September 2024.
It also has strong profit performance in the first nine months of the year and has positive operating cash flows and ample liquidity.
The bonds will be issued as second tranche from the company’s P35 billion shelf registration worth P35 billion approved by the Securities and Exchange Commission (SEC) in 2023.
