Gotianun-led Filinvest Land, Inc. (FLI) on Friday said it is planning to sell up to P30 billion worth of debt paper.
The property developer told the stock exchange on Friday it filed a shelf registration of a planned issuance of fixed-rate, peso-denominated retail bonds with the Securities and Exchange Commission.
Of the P30-billion shelf registration, FLI intends to initially offer P9-billion in bonds, which will have an oversubscription option of up to P2.25 billion.
FLI management will determine other terms and conditions of the planned issuance such as the interest rate of the offer bonds.
The offer bonds will be comprised of 3-year and 5.5-year bonds, maturing in 2023 and 2026, respectively, for which the allocation will be determined by FLI based on the book building process.
To arrange the offering, the company has tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp. and SB Capital Investment Corp. as joint lead underwriters and bookrunners, and First Metro Investment Corp. as co-lead underwriter. China Banking Corp. – Trust and Asset Management Group will be the trustee.
The offer bonds will be issued in minimum denominations of P50,000 each, and in integral multiples of P10,000 thereafter.
Local debt watcher Philippine Rating Services Corp. has given the bonds a credit rating of PRS Aaa, the highest in its scale, which means the bonds are seen to have minimal credit risk.
FLI did not specify on Friday the purpose of the bonds, but it previously said it was allocating P16 billion for capital expenditures in 2020.
The company’s attributable net income contracted 24% to P2.3 billion in the first half, as revenues slid 30% to P8.81 billion, weighed down by operational disruptions due to the coronavirus pandemic.
Shares in FLI at the stock exchange inched up two centavos or 2.17% to close at 94 centavos apiece on Friday. — Denise A. Valdez