LISTED property firm Filinvest Land Inc.’s (FLI) planned P5-billion bond issuance has been assigned a PRS Aaa rating, the highest rating for bonds with the lowest credit risks by Philippine Rating Services Corp. (PhilRatings).
In a statement, FLI said its seven to 10-year P5-billion debt notes, with an oversubscription option of P2 billion, got the high mark based on FLI’s sustained growth in its property and leasing businesses; good debt position and high financial flexibility; good brand name and track record; diverse portfolio and significant land bank; and medium-term favorable economic and industry conditions.
Other FLI outstanding bonds with PRS Aaa ratings were the P4.5 billion bonds due in November 2014, P3 billion bonds due 2016, P7 billion bonds due 2019, P4.3 billion bonds due 2020, and P2.7 billion bonds due 2023.
As of end-June, FLI has more than 129 projects in 43 cities across the country, with a land bank of 2,347 hectares.
The company’s net income rose to P2 billion in the first six months of the year from P1.74 billion a year ago, while revenue rose 24 percent to P7.8 billion.
FLI said the strong real estate demand—backed by low interest rates on home financing and a huge housing backlog — together with the growing business process outsourcing industry and rising disposable incomes will support and boost the company’s expansion plans.
In the first half alone, it has already spent half of its P38 billion capital expenditure for 2014, in line with the company’s target to launch P17.5-billion worth of projects within the year.
Incorporated in 1989, FLI is the property unit of Filinvest Development Corp., which is engaged in township projects that consist of retail, residential and office spaces.