FLI to use bond proceeds for capex

FILINVEST Land Inc., the Gotianun-led property developer, listed P11.9 billion in 3-year and 5-year fixed rate bonds at the Philippine Dealing and Exchange Corp. last Thursday.

The company told the Philippine Stock Exchange that it would use the proceeds from the bond float to partially finance its capital expenditure program and refinance maturing debt.

The proceeds of this bond issuance will add to its internally generated funds in support of its continued expansion in the affordable and middle-income residential development.

The paper was almost 10 times oversubscribed on its base offer of P8 billion, the company said.

FLI President and Chief Strategy Officer Tristaneil D. Las Marias said in a statement the company has “a strong lineup of over P30 billion new residential projects to be rolled out in the coming year in new territories.”

Stable rate

LAS Marias added there are also expansions in 32 existing medium-rise building townships nationwide.

“We target to launch in new areas like Bataan, Santa Maria in Bulacan, Naga in Camarines Sur and in General Santos, South Cotabato,” the executive said. “Housing continues to grow at a stable rate despite the pandemic. We expect this to further grow as we transition out of the pandemic.”

The company said it introduced new recurring business products such as co-living, co-working and logistics and innovation parks with ready-built warehouses. Its first co-living development, which FLI have branded as “The Crib,” is located at Clark Mimosa in Pampanga, with the first two buildings “set to be operational soon.”

“There are also two more ‘The Crib’ buildings under construction,” company CEO Lourdes Josephine Gotianun-Yap said.

“On the other hand, we envision our Innovation Park in New Clark City in Tarlac and Filinvest Technopark in Calamba, Laguna to be the preferred location of logistics, data centers, e-commerce, light manufacturing, and storage business operators,” Gotianun-Yap was quoted in a statement as saying. “This will add to our portfolio of recurring income projects which we aim to infuse into Filinvest REIT [real estate investment trust] at the right time.”

Residential revenues

THE firm’s latest bond issuance was the third and final tranche out of the P30-billion bonds that FLI registered in 2020 under the shelf registration program of the Securities and Exchange Commission.

The company issued the first tranche in November 18, 2020 at P8.1 billion and the second tranche in December 21, 2021 at P10 billion.

BDO Capital and 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. were picked as the deal’s joint lead underwriters and bookrunners.

Last May the company reported P4.31 billion in revenues and other income for the first quarter of 2022. FLI said it posted P2.69 billion of residential revenues, which is a 9-percent growth compared to the same period last year.

FLI said last month that the “growth in residential revenues was due to continued construction progress and high reservation sales.”