Filinvest Land Inc. has tapped a consortium of major banks to underwrite and arrange a planned bond offering of up to P11.57 billion, as the Gotianun Group’s property arm returns to the debt market to support expansion.
The company said its executive committee approved the issuance of Philippine peso denominated fixed rate bonds with maturities of up to ten years and named a group of financial institutions as joint lead underwriters and bookrunners.
Mandated to manage the public offer are BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., EastWest Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp., and SB Capital & Investment Corp.—among the largest domestic investment banks, virtually guaranteeing the success of the bond sale.
The planned issuance will represent the third tranche of Filinvest Land’s P35 billion shelf registered bond program earlier approved by the Securities and Exchange Commission.
Filinvest Land said the offering forms part of its broader funding strategy as it continues to roll out residential communities, townships and mixed use developments across the country.
The company has also appointed Philippine Depository & Trust Corporation as registrar and paying agent, while Philippine Rating Services Corporation will provide the credit rating for the issue. Once issued, the bonds are expected to be listed on the Philippine Dealing and Exchange Corp.
Management was authorized to finalize key details of the offer, including the timing of the issuance and other terms.
The move highlights the continued reliance of Philippine property developers on the domestic bond market to secure long term financing while maintaining flexibility under shelf registered fundraising programs.
