Filinvest Land Inc. (FLI), the listed property unit of the Gotianun Group, has secured the highest PRS Aaa Issue Credit Rating from Philippine Rating Services Corporation (PhilRatings) for its planned bond issuance of up to P12 billion.
In a statement, PhilRatings said FLI is planning to issue bonds worth P9 billion with an oversubscription option of up to P3 billion.
PhilRatings also maintained the PRS Aaa Issue Credit Rating for each of the outstanding bonds of the company, with a total amount of P36.1 billion.
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.
Each of the ratings was also assigned a stable outlook which means the rating is likely to remain unchanged in the next 12 months.
“We are grateful to PhilRatings for the credit rating they issued for our most recent bond issuance," said FLI President and CEO Tristan Las Marias.
He noted that "this is a testament to the confidence of the capital market community in our vision of continuing to provide best-value homes to more customers and improve their lifestyles in pursuit of the Filipino dream.”
The assigned Issue Credit Ratings take into account FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion.
PhilRatings also considered the firm’s sound growth strategies and solid foothold in the affordable and middle-income segments, its strong profit performance in 2023 and the first nine months of 2024, and FLI’s positive operating cash flows and ample liquidity.
FLI continues to have a strong foothold in the affordable and middle-income residential market segments. More than 85 percent of the company's total real estate sales were from these segments as of end-September 2024.
“Given the significant portion of the country's property purchases coming from the middle-income market, FLI is well-positioned to capitalize on this demand and its projected expansion,” PhilRatings said.
To sustain its growth, FLI continues to develop new products and strengthen its presence in cities where it has a foothold. In the first nine months of 2024, FLI launched 11 new projects worth P20.4 billion.
Furthermore, FLI ventured into the emerging condotel market through the acquisition of Fora Services Inc. (FOSI).
FOSI is engaged in operating and managing real estate projects and providing hospitality-related services with Quest Hotel Tagaytay as its main hospitality project.