The Gotianun Group’s investment holding company Filinvest Development Corporation (FDC) has secured the approval of the Securities and Exchange Commission (SEC) for its upcoming P10 billion bond issuance.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said the SEC has approved its fixed rate bonds comprising a base offer of P7 billion with an oversubscription option of up to P3 billion.
The issuance, scheduled for Feb. 7, 2024, marks the first tranche of the company’s new three-year shelf registration amounting to P32 billion.
The bonds were recently assigned an Issue Credit Rating of PRS Aaa, the highest rating conferred by PhilRatings, which is indicative of FDC’s strong capacity to meet financial commitments.
The issuance was also assigned a Stable Outlook with Philrating’s view that the ratings will likely remain unchanged in the next 12 months.
The net proceeds will be allocated to partially finance the company's maturing bonds amounting to P7 billion and fulfill capital expenditure requirements totaling P3 billion.
“The approval of our bonds paves the way for an enticing and stable investment opportunity for investors while funding the company's expansion,” said FDC President and CEO Rhoda A. Huang.
She added that, “we are also pleased that PhilRatings has assigned a PRS Aaa rating to our proposed bond issuance. This rating is reflective of our current financial performance and underscores our commitment to drive growth through our diverse business holdings.”
According to Philratings, key considerations in assigning the Issue Credit Ratings were FDC’s conservative and professional management, the proven track record and established brand names of its main contributing subsidiaries, and its stable revenue stream from its diversified business portfolio.
The Filinvest Group reported strong financial results with a notable net income attributable to equity holders of the parent company amounting to P5.9 billion for the first nine months of 2023.
This marked a 57 percent increase from the P3.8 billion net income generated during the corresponding period last year.
The substantial growth was propelled by a 26 percent increase in total revenues and other income, surging from P51.1 billion in the first nine months of 2022 to P64.6 billion in the same period in 2023.
Despite challenges posed by high interest and inflation rates, FDC's diversified business segments, spanning banking, real estate, hotels, power, and sugar, reflected broad-based growth in both revenues and profits.