Filinvest Land Inc. (FLI), the property arm of the Gotianun family, said it obtained the Securities and Exchange Commission’s approval for its planned P12-billion bond offering.
FLI said in a disclosure to the stock exchange Tuesday it would sell P9 billion worth of fixed-rate bonds, with an oversubscription option for another P3 billion.
The bonds will be issued in several tranches. The of 5-year bonds due 2030 will carry interest rate of 6.2916 percent per annum, 7-year bonds due 2032 with interest rate of 6.6550 percent and 10-year bonds due 2035 with interest rate of 6.8312 percent per annum.
The bonds will be issued as the second tranche from its P35-billion bond shelf registration program.
FLI said it would use the proceeds to redeem P8.925 billion worth of fixed-rate bond maturing in July 2026 and fund land development and construction of real estate projects.
Offer period will run from Feb. 19, 2025 to March 4, 2025.
The bonds will be listed in the Philippine Dealing & Exchange Corp. on March 12, 2025.
The property firm mandated BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp. and SB Capital Investment Corp. as the joint lead underwriters and book runners to manage the public offer and issuance.
Metropolitan Bank & Trust Company-Trust Banking Group will serve as the trustee.
The bond offering earlier obtained PRS Aaa from Philippine Rating Services Corporation (PhilRatings).
A credit rating of PRS Aaa means that the offering is 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.
FLI initially issued P11.4 billion worth of bonds under its bond shelf registration program in December 2023.
The property firm owns a land bank of 1,667 hectares and another 196.5 hectares under joint venture arrangements and 489.6 hectares under joint development or long-term leasing agreement.