Filinvest issues P1-B 5-year notes to DBP

Filinvest Development Corp. (FDC), a diversified investment holding company owned by the Gotianun family, has issued P1 billion worth of five-year corporate notes to state-owned Development Bank of the Philippines.

In a disclosure to the Philippine Stock Exchange, FDC said the debt notes will be secured by a real estate mortgage on the company’s property in Cebu and a pledge of common and preferred shares in subsidiary Filinvest Asia Corp.

FDC will use the proceeds from the issue to refinance its obligations and/or those of its subsidiaries, and for new developmental projects.

FDC had approved the purchase of P1.2 billion five-year convertible bonds issued in 2002 by its realty unit Filinvest Land Inc. (FLI) The bonds will mature in December 2010.

The bonds, convertible to shares of FLI, were acquired by FDC from Reco Grandhomes Pte. Ltd. They may be redeemed anytime without penalty.

The underlying shares for conversion totaled 640 million, which were supposed to come from the unissued portion of FLI’s authorized capital.

Reco Grandhomes is managed by GIC Real Estate Pte. Ltd., a subsidiary of the Government of Singapore Investment Corp. Pte. Ltd.

FDC earlier sought a P540-million loan from financial institutions to refinance obligations and for working capital requirements.

FLI, meanwhile, has set aside P10 billion over the next five years for the development of new projects, including Timberland Sports and Nature Club in San Mateo Rizal; Laguna de Taal in Tagaytay, and the new Asenso Business Parks. It also plans to develop a 12-hectare property in Mactan Island into a residential and leisure project.

FDC reported a 129-percent growth in net income in the nine months ending September 2005 to P383.7 million from only P167.4 million the previous period.

The increase was attributed to the improved performance of its property and financial services units.

Consolidated revenues reached P3.33 billion during the period Jto P1.41 billion, which came mostly from additional loans granted. Of the total, P767.1 million came from the group’s banking and financial services which is an improvement of 23 percent from the year-ago level.