FDC fully pays off $150-M convertible bonds

Filinvest Development Corp. (FDC), the holding company of the Filinvest Group, announced yesterday that it has effectively completely paid off on Nov. 15, 2001 its $150 million, 2.5-percent convertible bonds due 2006 issued in May 1996.

FDC had previously retired about $81.5 million of this bond issue. FDC further redeemed $68 million as majority bondholders exercised the put option on Nov. 15, 2001. The bondholders of the remaining $500,000 who did not exercise the put option will be paid as the bonds mature in 2006.

FDC president and COO Josephine Gotianun-Yap explained that debt reduction is one of the highest priorities of the company. "Despite the very challenging economic environment, FDC was able to meet its financial commitments on time. We credit this to prudent financial management, which has always been the company’s philosophy."

Gituanun-Yap added that aside from strengthening its core property business, FDC also capitalized on its perceived strengths by adapting its products to prevailing market conditions and building up its recurring income base from its commercial leasing operations from Festival Supermall, PBCom Tower and Northgate CyberZone.

FDC remains a dominant presence in residential and commercial property development with subsidiaries Filinvest Land, Inc. and Filinvest Alabang, Inc., the developer of Filinvest Corporate City in Alabang. Also in the south, Festival supermall has established itself as a premier regional shopping destination.

FDC subsidiary Filinvest Asia Corp. owns 50 percent of the 52-story PBCom Tower along Ayala Avenue that now stands as the Philippines’ tallest building and is now home to several major locators.

In financial services, the revitalized East West Bank continues to serve the public with a new image and a wide range of services for its clients.

Northgate CyberZone, the company’s PEZA-accredited information technology zone is now operational with two high-tech buildings in place for technology companies.

Gotianun-Yap added that FDC remains cautiously optimistic during these tough times. "FDC’s long-term prospects largely hinge on sound policies and solid core values which over the years have enabled the company to firmly establish its track record of stability and growth even during challenging economic times."