FLI plans P30-B bond offer

Filinvest Land Inc. (FLI) of the Gotianun family is looking to raise as much as P30 billion from a planned bond offering under shelf registration, company officials said yesterday.

FLI chief financial officer Nelson Bona said the company intends to launch a P30billion shelf registration program in the first quarter next year, subject to the approval of the Securities and Exchange Commission.

The initial tranche is expected to be worth P10 billion, he said.

“We intend to do a three-year shelf registration at P10 billion a year. The remaining tranches will be done in the following years,” Bona said.

“Our preferred tenor is long term but depends on the rate at that point in time. As for the amount, we can amend it if there’s really a need to increase it at that time,” he added.

Under shelf registration, issuers have the option to register and sell issues under the same regulatory documents securities, which they do not intend to sell right away.

Securities to be issued in tranches may be registered for an offering to be made on a continuous or delayed basis for a period not exceeding three years.

“The good thing in having shelf registration is you don’t have to go back every year. We will already have the approval in one go,” Bona said.

FLI president and chief executive officer Josephine Gotianun-Yap said proceeds from the fundraising would be used for capital expenditures, particularly in financing planned recurring income projects.

“We’re one of the biggest commercial land owners in Alabang, in Clark and in Cebu. Those three major locations are where we’re doing our recurring income projects,” she said.

“So far, all our new buildings, the ones that came into the market last year, it’s either 100 percent leased out or there’s a letter of intent already,” Gotianun-Yap added.

FLI is the property arm of Filinvest Development Corp., which has earmarked P44 billion in capital expenditures this year.

FLI registered a seven percent increase in net earnings to P3.5 billion as of endSeptember, as revenues grew six percent to P13.6 billion. The company recently completed two new buildings, Filinvest Cyberzone Bay City 1 and 2, with 37,000 square meters of gross leasable area.

FLI is likewise growing its retail rental space portfolio with the major expansion of Festival Mall in Alabang to add almost 100,000 square meters of gross floor area to the complex.

By the end of the year, FLI is expected to double its end-2015 gross floor area level to more than 433,000 square meters.