Filinvest raises P10 B from new bond offer

Filinvest Development Corp. (FDC) has raised P10 billion from the first tranche of its bond offering under shelf registration.

The fixed rate bonds, which has an interest rate of 6.3206 percent per annum and a maturity period of 2.5 years, were listed with the Philippine Dealing & Exchange Corp. yesterday.

FDC said the bonds garnered significant interest from investors, with subscriptions exceeding the base offer by more than fourfold.

Proceeds of the offer will be used by the company to finance capital expenditures and repay existing due debts.

“The net proceeds from this issuance will be used to partially finance our maturing bonds redemption and capital expenditures to accelerate the growth of our businesses. This includes financing our equity investments in renewable energy and water, hospitality, and digitalization projects,” FDC president and CEO Rhoda Huang said.

The issuance is the first tranche of fixed rate bonds totaling P32 billion under a shelf-registration program with the Securities and Exchange Commission.

The initial tranche consisted of a base offer of P7 billion and an oversubscription option of up to P3 billion.

Huang said the overwhelming response to the first tranche of its P32-billion bond program reflects investors’ confidence in the company’s growth and the country’s economic outlook.

“FDC is committed to living up to the trust the investing community has placed in us. We remain committed to enable Filipinos to maintain their dreams,” she said.

The first tranche bonds attained the highest PRS Aaa rating from the Philippine Rating Services Corp. (PhilRatings).

“We are honored by the PRs Aaa rating assigned to FDC’s bond issuance by PhilRatings. This reflects our financial performance and standing and healthy diversification of our business,” Huang said.

FDC has strategic holdings in key industries such as real estate development and leasing through Filinvest Land Inc. and Filinvest Alabang Inc., banking and financial services through EastWest Bank, hotel and resort development and management through Filinvest Hospitality Corp., power generation through FDC Utilities Inc., and agriculture through Pacific Sugar Holdings Corp.

“FDC’s issuance of bonds reinforces the fact that the Filinvest Group’s growth is unstoppable, with businesses that are considered pioneers in their respective industries,” SEC chairperson Emilio Aquino said.

– Richmond Mercurio