PROPERTY Developer Filinvest Land Inc. (FLI) listed its P8-billion fixed-rate bonds on the Philippine Dealing and Exchange Corp. Thursday.
The bonds comprise of P5 billion in primary offering and P3 billion in oversubscription allotment approved by the Securities and Exchange Commission. The seven- and 10-year bonds are due in 2022 and 2025.
FLI President and CEO Josephine Gotianun-Yap said that the decision to tap the bond market was in line with the company’s aim of attaining rapid and sustainable development. She noted that the bond float will allow the company to set aside more than P20 billion for capital spending in the next 15 months.
“With this bond issuance, FLI is now in full-gear for office and retail space expansion. We are tripling our office and rental portfolio to close to one million square meters of gross leasable area in the next five years,” she said.
FLI is spending part of its budget on residential development and land acquisition.
“Filinvest Land continues to focus on its core markets – first time homebuyers and ultimate end-users. By focusing on Oasis and Spatial medium-rise buildings and the Futura affordable housing projects, the majority of our projects serve our core markets and have construction cycles of one year or less for faster revenue recognition and less exposure to construction cost risk,” Gotianun-Yap said.
The developer launched P6 billion worth of projects for the first half of the year, and targets to launch a total of P16 billion for the whole of 2015.
Revenues generated from real estate sales amounted to P6.6 billion in the first half of 2015.
In the second half of the year, Filinvest plans to launch 20 new residential projects worth P16.2 billion in Cavite, Batangas, Rizal, Cebu, Davao, and Iloilo, as well as in Pasig, Parañaque, Tagaytay, Muntinlupa, and Quezon City.