THE Philippine Rating Services Corp. (PhilRatings) has assigned the highest issue credit ratings and stable outlooks on the proposed bond issuance of Filinvest Land Inc. (FLI), the developer announced last Monday.
FLI’s proposed bonds, amounting to P10 billion, with a P2-billion oversubscription option, were assigned an issue credit rating of PRS Aaa. The same PRS Aaa rating was also assigned to FLI’s outstanding bonds, totaling P35.4 billion.
Proceeds from these bonds will be used for capital expenditures and debt refinancing, according to FLI.
Obligations rated PRS Aaa (the highest rating assigned by PhilRatings) are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment to the obligation is extremely strong. Each of the ratings was also assigned an Outlook of Stable. An Outlook is an indication as to the possible direction of any rating change within one year and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators and the general public.
A Stable Outlook means the rating will likely be unchanged in the next 12 months.
According to PhilRatings, the assigned credit ratings take into account FLI’s “established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion.”
Likewise, PhilRatings said it also considered FLI’s “sound growth strategies” and its “improved revenues and operating cash flow, supported by more than satisfactory liquidity and interest coverage,” among other factors.
A statement issued by FLI read that it will launch this year condominium and housing developments in Antipolo City, Taytay, Angono, Calamba City, Tanauan City, Trece Martires City, Bacoor City, Dumaguete City, and the Island Garden City of Samal.
The statement also read that FLI will also accelerate the development of its township projects in the following areas: Cainta, Rizal; San Mateo, Rizal; Calamba City, Laguna, Trece Martires City, Cavite; and, Bacolod City, Negros Occidental.
These townships will include residential, commercial, transportation, and school components to create a self-sufficient environment that considers the needs of residents and customers in mind, the developer’s statement read.
For malls, FLI is currently constructing Marina Town in Dumaguete City, which will open by end-2023, and new malls in Filinvest Mimosa+ Leisure City and Activa Cubao, which will open by end-2024, the developer revealed. These will expand FLI’s retail portfolio by about 55,000 square meters in gross leasable area (GLA), bringing FLI’s nationwide retail GLA to 300,000 square meters.
FLI is also present in the industrial park and ready-built factory leasing businesses with its Filinvest Innovation Parks in New Clark City, Tarlac, and Calamba City, Laguna.
Last August 19, FLI broke ground on the 25-hectare Filinvest Innovation Park Ciudad de Calamba, an expansion of the 50-hectare Filinvest Technology Park in Ciudad de Calamba. FIP-CDC is envisioned to become a stage for new and relevant products that will catalyze progress in the local community.
