THE proposed bond offering of listed property developer Filinvest Land, Inc. (FLI) has earned the highest issue credit rating and “stable” outlook from Philippine Rating Services Corp. (PhilRatings).
FLI said in a statement on Monday that its planned bond issuance — consisting of P10 billion, with a P2-billion oversubscription option — received a PRS Aaa credit rating as well as a stable outlook from PhilRatings. The offering has a maturity period of 3.5 years.
According to FLI, the proceeds from the bonds will be for capital expenditures and debt refinancing.
“Obligations rated PRS Aaa, the highest rating assigned by PhilRatings, are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment to the obligation is extremely strong,” FLI said.
“An outlook is an indication as to the possible direction of any rating change within a one-year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public. A stable outlook means the rating will likely be unchanged in the next 12 months,” it added.
The offer is the first tranche of FLI’s peso-denominated fixed-rate bond offering at an aggregate principal amount of up to P35 billion to be issued in tranches.
FLI President and Chief Executive Officer Tristaneil D. Las Marias said the rating reflects the company’s “healthy fundamentals” and highlights its “constant focus on growth and financial sustainability.”
“We are delighted to receive a PRS Aaa rating from PhilRatings for our proposed bond issuance… We are grateful for PhilRatings’ trust and confidence in Filinvest Land and aim to continue building the Filipino dream through our various property developments,” Mr. Las Marias said.
The joint lead underwriters and bookrunners of the offering are BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp.
Rizal Commercial Banking Corp.-Trust and Investments Group will serve as the trustee.
This year, FLI will launch condominium and housing developments in Antipolo City, Taytay, Angono, Calamba City, Tanauan City, Trece Martires City, Bacoor City, Dumaguete City, and the Island Garden City of Samal.
The developer will also accelerate the development of its township projects in East Town in Cainta, Rizal; Timberland Heights in San Mateo, Rizal; Ciudad de Calamba in Calamba City, Laguna; The Wood Estates in Trece Martires City, Cavite; and Palm Estates in Bacolod City, Negros Occidental. These townships include residential, commercial, transportation, and school components.
For malls, FLI is currently building Marina Town in Dumaguete City which will open by end-2023, as well as new malls in Filinvest Mimosa+ Leisure City and Activa Cubao which will open by end-2024. These developments will expand FLI’s retail portfolio by about 55,000 square meters in gross leasable area (GLA), bringing the company’s nationwide retail GLA to 300,000 square meters.
On Monday, shares of FLI gained one centavo or 1.59% to close at 64 centavos per share. — Revin Mikhael D. Ochave