FLI retires $100-M convertible bond issue

Filinvest Land Inc. (FLI) announced yesterday the full retirement of its $100-million convertible bonds issued in 1996.

FLI president Joseph M. Yap announced that "The retirement of our $100-million bond issue is a major accomplishment in our overall debt reduction program. FLI’s foreign currency exposure has been completely eliminated through the retirement of the US dollar bond issue. Total borrowings of the company now stands at P3.5 billion significantly down from its high of P8 billion in 1999." Over the last three months, the Filinvest Group, namely Filinvest Development Corp. (FDC) and FLI, has retired a total of $250 million in convertible bond issues.

FLI recently concluded the issuance of P12-billion convertible bonds to Reco Grandhomes Pte. Ltd., a Singaporean investment company managed by GIC Real Estate Pte. Ltd. (GIC RE) which is a leading global real estate investment manager. GIC RE is a subsidiary of Government of Singapore Investment Corp. Pte. Ltd.

"Filinvest welcomes the entry of this long term strategic foreign investor. Their investment signals the confidence of the international investment community both in FLI as well as the Philippines. Partnering with a strong global real estate investor provides synergy and will allow FLI access to regional trends in the real estate business. The sale of the P1.2-billion bonds together with the sale of our installment receivables was part of the fund-raising activities we undertook to successfully meet our financial obligations. By issuing convertible bonds, there is a greater possibility of increasing our equity base and reducing our reliance on debt, thus, reducing interest cost and increasing future earnings."

FLI is one of the country’s largest residential real estate developers and offers a wide range of products from low-cost to high-end housing through its Pabahay, Futura Classic, Corte Bella, and Excelion brands.

FLI’s reach goes beyond the Metro Manila and the Calabarzon; with regional developments in Cebu and Davao and an International Sales Division which continues to achieve notable success in its overseas selling campaign.