Filinvest Development lists retail bond tranche
GOTIANUN-LED Filinvest Development Corp. (FDC) listed its P10 billion worth of fixed-rate retail bonds due 2026 with the Philippine Dealing and Exchange Corp. (PDEx) on Wednesday.
The 2.5-year bonds, issued as the first tranche of the company’s P32-billion bond program, consisted of an aggregate principal amount of P7.0 billion and an oversubscription option of up to P3.0 billion.
Rhoda Huang, FDC president and chief executive officer, said the “overwhelming” response to offering showed “investors’ confidence in our company’s growth and the country’s economic outlook.”
The bonds carry an interest rate of 6.3206 percent per year. Bids totaled P31.5 billion, more than fourfold the amount of the base offer, the company noted.
“FDC remains committed to living up to the trust of maintaining the optimism of the investing community that has been placed on us,” Huang said in a statement.
The bond issuance was marked by a bell-ringing ceremony attended by Filinvest Group Chairman Jonathan Gotianun as well as Huang, officials of the Securities and Exchange Commission (SEC), PDEx, and the joint lead underwriters and bookrunners for the transaction.
BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. were the offer’s joint lead underwriters and bookrunners.
Proceeds of the issuance will be used to partially fund FDC’s maturing bond redemption and capital expenditures, as well as equity investments in renewable energy and water, hospitality, and digitalization projects, Huang said.
The bonds were assigned an issue credit rating of PRS Aaa, the highest rating conferred by PhilRatings, “indicating the company’s strong capacity to meet financial commitments,” FDC said.
The holding firm of the Gotianuns currently has investments in real estate development and leasing, banking and financial services, hotel and resort management, power generation, and agriculture.
SEC Chairman Emilio Aquino said the bond issuance reinforced the Filinvest Group’s “unstoppable” growth driven by its business segments that are “considered pioneers in their respective industries.”
“There is no doubt in saying that FDC, as an industry leader, is certain to reach promising heights and might even surpass excellence in achieving all its goals.”
Last December, the SEC approved the company’s registration statement covering its P32-billion bond program.
FDC shares on Wednesday were unchanged at P5.50 apiece.