The board of Gotianun-led Filinvest Land Inc. (FLI) has approved the company’s offer of P11.9 billion in fixed-rate retail bonds.
The company’s bond offer consists of P8 billion in primary offering and an over-subscription option of up to P3.9 billion. The paper will have tenors of three and five years.
The said offering is company’s third tranche of its P30-billion shelf registration program which it registered with the Securities and Exchange Commission in 2020.
The company issued the first tranche of its debt on November 18, 2020 at P8 billion, followed by P10 billion on December 21, 2021.
“The board of directors of the company has authorized the management of the company to evaluate all aspects relating to the proposed offering of the third tranche bonds, including the determination of the timing thereof and interest rate,” the company said.
The company mandated 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. as the deal’s joint lead underwriters and bookrunners to manage this public offer and issuance.
The Gotianuns’ real estate business, consisting of FLI and Filinvest Alabang Inc., had a P4.9 billion in net income in 2021, lower by 18 percent from the previous year’s P6 billion.
The company said the drop was due to the so-called high-base effect as Filinvest Alabang recognized an income of P2.4 billion in 2020 for the joint development of a prime property in Filinvest City in Alabang.
Revenues from the residential segment rose by 14 percent to P12 billion driven by the high reservation sales of the affordable and middle-income housing projects and construction progress. Rental revenues reached P5.9 billion.
Filinvest Development Corp., the holding firm of the Gotianun Group, said its attributable income last year fell 28 percent to P6.1 billion from the previous year’s P8.46 billion as its businesses still faced varying degrees of disruptions caused by the pandemic.
Its 2021 income was just half of its profits in 2019 at P11.97 billion.
The company said its revenues and other income were lower by 13 percent as the growth posted by the residential and power businesses were offset by the contraction of the banking and commercial leasing units. Last year, the company had revenues of P60.71 billion, a 19-percent drop from the P74.84 billion recorded in 2019.