SEC approves FLI unit’s P6-billion bond offering
THE SECURITIES and Exchange Commission (SEC) has approved the application of Cyberzone Properties, Inc. to float up to P6 billion worth of bonds to finance its ongoing developments.
The unit of listed property firm Filinvest Land, Inc. (FLI) earlier filed a prospectus with the corporate regulator to issue P5 billion in fixed rate bonds with an oversubscription option of P1 billion. The bonds may be issued in tenors of five and/or up to 10 years.
SEC Officer-in-Charge of the Office of the Commission Secretary Armando A. Pan, Jr. confirmed the approval of the bond offering in a text message on Thursday.
The Gotianun- led office developer for business process outsourcing firms plans to use the proceeds of the sale to partially fund the development of its existing buildings and new projects under construction. This includes the construction of Vector Three, Megablock Parking, Filinvest Axis Towers 1 to 4, and Filinvest Cebu Cyberzone Towers 2 to 4.
Debt watcher Philippine Ratings Services Corp. (Philratings) in April assigned the proposed bond issue a PRS AAA rating, which it the top credit score given by the agency. This indicates that the issue has the highest quality with minimal credit risk, as well as a stable outlook for the next 12 months.
In an earlier statement, Philratings said it took into account the company’s “exceedingly competitive and focused office portfolio which has been consistently growing while maintaining high occupancy rates; supportive economy and industry outlook, backed by resilient and growing demand; and synergies with the Filinvest Group, including an established brand name and track record, along with a highly experienced management team.”
FLI posted a 7% year-on-year increase in its net income to P1.41 billion in the first quarter of 2017, following a 26% rise in revenues to P5.9 billion from the P4.67 billion it generated in the same period a year ago.
Shares in FLI gained three centavos or 1.78% to close at P1.72 each on Thursday. —