FBDC withdraws P330-M issue due to debt restructuring plan

Fort Bonifacio Development Corp. (FBDC) has withdrawn the issuance of P330-million worth of short-term commercial papers (STCPs) due to a new debt restructuring plan being worked out with its creditors.

Philippine Rating Services Corp., the local affiliate of credit rating agency Standard & Poor’s, said the Bonifacio Global City developer had withdrawn its STCP application with the Securities and Exchange Commission, prompting Philratings to similarly retract its PRS 3 rating on FBDC.

In a statement, Philratings said the rating is being withdrawn because of FBDC’s failure to submit required information needed to update its credit rating.

A PRS 3 rating refers to "satisfactory capability for payment of debt instrument on both principal and interest. The effect of industry characteristics and market composition may be more pronounced. Variability in earnings and profitability may result in changes in debt protection measures."

FBDC recently reached an agreement with its creditors to fully settle its outstanding STCP balance of P42.6 million by Sept. 30, 2003.

FBDC, a 55-45 joint venture between the Metro Pacific Corp.-led Bonifacio Land Corp. and the state-run Bases Conversion Development Authority, has been tasked to develop the former military base into a premier central business district.

FBDC said it is optimistic it will resolve its financial problems this year as it continues with its expansion activities.

Early this year, the partnership of Ayala Land Inc. and Greenfield Development Corp. took control of the majority 50.4 percent stake in Bonifacio Land from Metro Pacific, resulting in the overhaul of FBDC management.

The company said it is looking at a possible sale of land or long-term lease in the Bonifacio Global City with local groups, which could be used for retail, office or residential developments.

FBDC is co-developing a hypermarket with the Rustan’s group’s Shopwise in a 25,000 - square meter property. The company has also tied up with MC Home Depot Inc. for the hypermart.

Under the project, FBDC will contribute the land while MC Home Depot will provide the materials for the construction. A contractor will be hired to develop the retail center.

FBDC expects to hit sales of between P4.5 billion to P7.5 billion within the next few years, including land divestment and leases.

FBDC is also expected to earn from the expansion of the

Bonifacio Stopover, a retail and service complex located near the Kalayaan flyover.