FLI’s office leasing unit raising
Filinvest Land, Inc. (FLI) office leasing subsidiary Cyberzone Properties, Inc. (CPI) is planning to issue R5.0 billion worth of bonds, with an oversubscription option of up to R1.0 billion.
The bonds, which have been assigned the highest PRS Aaa issue credit rating by Philippine Rating Services Corporation (PhilRatings), may be issued in tenors of five up to ten years.
The proceeds of the bonds will be used to partially finance the capital expenditure requirements of the company’s existing buildings and buildings under construction.
Some of the Cyberzone Properties’ buildings under construction include Vector Three, Megablock Parking, Filinvest Axis Towers 1 to 4 and Filinvest Cebu Cyberzone Towers 2 to 4.
PhilRatings said 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.
The issue credit rating was also assigned a Stable Outlook. This means that the assigned issue credit rating is likely to remain unchanged in the next 12 months.
According to PhilRatings, the assigned issue credit rating and outlook reflect the firm’s exceedingly competitive and focused office portfolio which has been consistently growing while maintaining high occupancy rates.
Also considered for the rating is the 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.
The rating also factored-in Cybezone Properties’ consistently growing profitability with strong margins and its more than ample liquidity in relation to debt servicing requirements.
Cyberzone Properties owns and manages office buildings which cater mainly to technology-based companies, including those engaged in Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), as well as those that serve as call centers and support businesses to various foreign companies.
FLI operates 21 buildings totaling 312,000 square meters (sqm) of gross leasable area (GLA). CPI accounts for about 77 percent of FLI’s total GLA as of end 2016.
Most of CPI’s office buildings are located in Northgate Cyberzone, within Filinvest City in Alabang, Muntinlupa City, while some are in Cebu Cyberzone in Lahug, Cebu City. Both locations are declared as Special Economic Zones (SEZ) by the Philippine Economic Zone Authority (PEZA).