MANILA, Philippines — Filinvest Land Inc. is planning to raise P11 billion from an issuance of fixed rate bonds which Philippine Rating Services Corporation (Phil Ratings) has assigned its highest PRS Aaa rating.
In a disclosure to the Philippine Stock Exchange, FLI said it intends to issue the bonds in two tranches. The first tranche, worth P7 billion, will be issued within the second quarter of 2012.
The second tranche worth P4 billion will be issued later in the year (third or fourth quarter of 2012). The bonds will have a term of seven (7) years. The bonds will be used to partially finance FLI’s capital expenditures for 2012 amounting to P15 billion.
Phil Ratings also maintained its PRS Aaa rating for FLI’s outstanding bond issue, composed of the P5 billion in fixed-rate bonds (P500 million bonds due in 2012 and P4.5 billion bonds due in 2014) and the P3 billion in fixed-rate bonds due in 2016.
The ratings assigned reflect the healthy growth of FLI’s real estate and leasing operations resulting in strong income generation; sound debt position and financial flexibility; FLI’s established brand name and diversified portfolio; and the relatively favorable economic and industry conditions.
In the near- to medium-term, forecast hikes in FLI’s real estate revenues will be derived from the expected continued strong performance of the affordable and middle-income segments.
Medium- and high-rise buildings and HRBs located in various areas in Metro Manila and at the South Road Properties (SRP) development in Cebu are likely to enjoy healthy sales take-up.
“Worth mentioning also is the expected significant growth in the company’s recurring rental income, coming from the completion of the expansion of the Festival Supermall, the retail project developments at SRP in Cebu and new office buildings,” Phil Ratings said.
Phil Ratings said the generally positive outlook for the real estate industry supports the growth forecasts of the company in the near-term to medium-term. Overseas Filipino remittances, which are projected to remain strong in 2012, bode well for real estate companies. (JAL)
No comments:
Post a Comment