Filinvest Land Inc., a member of the Gotianun Group, is planning to raise up to P35 billion over the next three years through the issuance of shelf-registered bonds in several tranches.
In a disclosure to the Philippine Stock Exchange, the firm said its Board of Directors has approved the proposed Shelf-Registration Statement to offer and issued fixed-rate peso denominated bonds worth P35 billion with a maturity period of seven years.
FLI is in the process of buying two real estate subsidiaries of Rizal Commercial Banking Corporation which own land in Bacoor, Cavite for a total of P633 million.
The firm has signed two share purchase agreements with RCBC which owns 100 percent of the outstanding capital stock of Niyog Property Holdings, Inc. and Cajel Realty Corporation.
With direct ownership of Niyog and Cajel, which owns several properties in Bacoor, Cavite, this transaction will increase FLI’s real estate developments in the area.
Niyog and Cajel are wholly-owned subsidiaries of RCBC and have joint development agreements with FLI, wherein FLI undertook the development of their parcels of land in Bacoor into an exclusive residential subdivision.
Total consideration for the purchase of the Niyog shares is P544.44 million while the price for Cajel shares amounts to P88.82 million, both of which shall be paid in installments.
FLI said 30 percent of the Purchase Price is payable upon closing while the balance net of retention shall be payable in five years within interest rate equivalent to 5-year BVAL rate.
The valuation for both Niyog and Cajel was agreed upon taking into account the value of their respective assets.