Filinvest Land bonds get sterling triple A from local ratings agency

Date: June 22, 2015

BONDS that Filinvest Land, Inc. (FLI) plans to sell in its bid to raise P8 billion in fresh capital were rated triple A by local debt watcher Philippine Rating Services Corp. (PhilRatings).

The Gotianun-led listed property developer had sought regulatory approval last June 15 to offer P5 billion worth of unsecured fixed-rate retail bonds with an oversubscription option of up to P3 billion.

In a statement over the weekend, PhilRatings said it has given Filinvest bonds a PRS Aaa issue credit rating, which it said meant “of the highest quality with minimal credit risk.”

“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” the debt watcher said.

Likewise, PhilRatings maintained the PRS Aaa rating of the following outstanding bonds: P3 billion due in 2016, P7 billion due in 2019, P4.3 billion due in 2020, P5.3 billion due in 2021, P2.7 billion due in 2023 and P1.7 billion due in 2024.

The agency said the rating reflects FLI’s “sustained growth of real estate and leasing operations, resulting in strong income generation and improved cash flows; well-managed debt position and good financial flexibility; established brand name and track record; focused strategy, with a geographically diverse portfolio and substantial land bank for future growth; and economic and industry conditions are seen to remain favorable in the short term and overseas Filipino remittances continue to grow.”

Net proceeds from the sale of seven- and 10-year bonds due 2022 and 2025, respectively, will be used to refinance liabilities and bankroll the development of FLI’s residential, commercial and office leasing projects.

The last time FLI tapped the bond market was in November last year when it raised P7 billion from the issuance of seven-year fixed-rate bonds due 2021 and 2024.

The real estate firm increased its capital expenditure budget to P24 billion this year, from P15 billion in 2014, with plans to launch P16.2 billion worth of residential projects.

Source: Business World
By: Krista Angela M. Montealegre

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