By James A. Loyola
Filinvest Development Corporation, the flagship of the Gotianun family, is raising up to ₱15 billion from a planned bond offering to fund its capital expenditures and settle maturing obligations.
In a disclosure to the Philippine Stock Exchange, the firm said it is planning a bond issuance of ₱8.0 billion, with an oversubscription option of up to ₱7.0 billion.
Philippine Rating Services Corporation (PhilRatings) has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, for the proposed bond issue.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
PhilRatings said FDC’s top rating was earned due to the stable revenue stream from its diversified business portfolio; and that the company’s main contributing subsidiaries, in terms of income and cash flows, have a proven track record and have established brand names.
Also, the rating took into account FDC’s conservative and professional management; and its growing and well-positioned businesses, particularly in real estate and banking.
FDC’s outstanding rated bonds amounting to ₱8.8 billion and maturing in 2024 continue to be rated PRS Aaa as well.
The Filinvest consortium recently paid ₱6.7 billion to Cebu City for the purchase of the 19.2 hectare property in South Road Properties.
The Filinvest consortium is composed of Filinvest companies and Sytengco-owned companies. The Filinvest firm include Filinvest Land, Inc., Filinvest Alabang, Inc., and Cyberzone Properties, Inc.
The Filinvest Group is also expected to focus on projects and developments in Clark, Pampanga in 2019, which includes the Clark International Airport, Filinvest Mimosa+ Leisure City and the 64-hectare Phase 1 of the Group’s township development in New Clark City.