FDC to raise P32 B from bond offer

Filinvest Development Corp. (FDC), the listed conglomerate of the Gotianun family, is looking to raise P32 billion from the issuance of fixed rate bonds.

The company has filed a registration statement with the Securities and Exchange Commission (SEC) for the offering of P10 billion worth of peso-denominated bonds that would comprise an initial tranche of its bond program.

The company tapped 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. as the joint lead underwriters and bookrunners.

The bonds shall be issued in minimum denominations of P50,000 each and multiples of P10,000 thereafter.

FDC said that within three years following the shelf registration of P32 billion, the company may sell the remaining balance of P12 billion.

During the first nine months, FDC reported a net income of P5.9 billion, 57 percent higher than the previous year. Revenues grew to P64.6 billion, up 26 percent and already above pre-COVID-19 levels.

Contributions of the different business segments are as follows: banking, 37 percent; real estate, 14 percent; power, 19 percent; sugar, 25 percent; and hospitality, 56 percent.

EastWest Bank reported a 33 percent jump in its nine-month profit while the group’s real estate’s total revenues grew by 15 percent, driven by higher residential and mall revenues.

Revenues from power, meanwhile, climbed by 19 percent or by P1.8 billion due to the significant increase in electricity prices driven by the high prices of fuel. The hospitality business registered a 53 percent growth in revenues due to higher occupancy and average room rates.