Federal Land Inc., the property development arm of GT Capital Holdings Inc., has raised P5 billion in corporate financing to fund its ongoing projects, among other things.
In a disclosure to the Philippine Stock Exchange, GT Cap, the investment holding company of tycoon George Ty, reported that Federal Land recently signed a P5-billion corporate notes facility agreement with a syndicate of institutional lenders composed of banks, insurance companies, pension funds and trust institutions.
According to the group, proceeds of the facility, which consists of 7- and 10-year fixed-rate notes, will be used for the property developer’s ongoing projects, working capital and general corporate purposes.
“Due to strong institutional demand, the size of the issuance was increased from the original P3 billion through Federal Land’s exercise of the entire overallotment option,” the disclosure added.
Federal Land President Alfred V. Ty, meanwhile, said that the timing of this debt raising enables the company to capitalize on current robust real-estate demand.
“Against the backdrop of a strong economy, we have maintained a steady surge in the market demand for our high-end, middle-end and affordable projects, from the western part of Metro Manila to the eastern section,” he said.
“The fundamentals of our company remain sound and we are committed to maintain this course,” Ty added.
This is the second time that Federal Land tapped the capital markets, following its maiden issue of P6.6-billion fixed-rate corporate notes in April 2011.
First Metro Investment Corp., the investment banking arm of the Metrobank Group, acted as sole arranger and bookrunner for both issuances.
Currently, Federal Land has over 30 ongoing projects in various stages of completion.
Federal Land earlier said that it is looking to develop a 100-hectare land in Biñan, Laguna, in a few years, right after the developer has polished its projects in the key cities in Metro Manila.