Filinvest Land bags top score for P7-B bond issue

MANILA, Philippines - Filinvest Land Inc. (FLI), the property development arm of the Gotianun family, has secured the highest credit rating for its planned P7-billion bond issuance.

In a disclosure to the stock exchange, the listed property firm said local credit rater Philippine Rating Services Corp. (Philratings) assigned the PRS Aaa score for the company’s long-term bonds.

“Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” Philratings said.

FLI plans to issue P5 billion worth of unsecured fixed rate peso bonds. In case of strong demand, the company plans to sell an additional P2 billion.

In the next 15 months, the Gotianun-led property firm committed to spend P27.29 billion to maintain rapid and sustainable growth through the development of high-rise and medium-rise buildings in Tagaytay, Iloilo and Cagayan de Oro, Quezon City and San Juan City.

The ratings agency also maintained the PRS Aaa score for FLI’s outstanding P4.5-billion bonds due in 2014, P3-billion bonds due in 2016 and P7-billion bonds due in 2019.

Philratings said the credit score reflects FLI’s sustained growth of real estate and leasing operations; conservative debt position and high financial flexibility; established brand name and track record; geographically diverse portfolio and substantial landbank for future growth; and favorable medium-term economic and industry conditions.

“FLI is one of the leading property developers in the country specializing in the socialized, affordable and middle-income housing segments,” Philratings said.

So far, the property developer has more than 100 projects in 39 cities across the country. It also has a landbank of 2,251 hectares as of end-2012.

In the first half, FLI grew its net income 13 percent to P1.72 billion from P1.525 billion last year. Real estate sales jumped 22 percent to P4.7 billion while rental revenues hit P933 million, up nine percent from a year ago.