Regulator approves FDC’s P7-billion fixed rate bonds


Filinvest Development Corp. (FDC), the listed holding company for the businesses of the Gotianun family, has secured the approval of the Securities and Exchange Commission (SEC) to proceed with its bond issuance which can reach P10 billion.

FDC announced in a statement on Monday that the SEC has issued a “Certificate of Permit to Offer Securities for Sale” for its P7-billion bond issue that has an option for oversubscription of up to P3 billion.

The holding firm is offering the fixed rate retail bonds with a term of 10 years.

The bonds, which will be offered from January 13 to January 17, 2014, will yield an interest of 6.14 percent per annum and will be issued in minimum denominations of P50,000 each, and in integral multiples of P10,000 thereafter. Issue date for the offer is on January 24, 2014.

The Philippine Rating Services Corp. (Philratings) recently assigned the highest rating of “PRS Aaa” to FDC’s bonds.

BPI Capital Corp. is the issue manager and the joint lead underwriter for the P7-billion bonds together with BDO Capital and Investment Corp., First Metro Investment Corp. and Standard Chartered Bank. China Bank is the co-lead underwriter and East West Banking Corp. is the selling agent.

Late last year, FDC issued P10 -billion worth of fixed-rate bonds of which proceeds will be used to bankroll its investments in the real estate sector as well as power generation.

The proposed issuance, which has a 10-year tenor, also got a top rating from PhilRatings.

FDC has several power projects in the pipeline, including the development of a three-unit, 405-megawatt coal-fired power plant in Misamis Oriental.


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