FDC raising P15 billion for capex

MANILA, Philippines — Filinvest Development Corp. (FDC) plans to raise as much as P15 billion from the issuance of fixed rate bonds.

FDC approved the issuance of P8 billion bonds with an oversubscription option of up to P7 billion.

Proceeds from the issue will be used for the retirement of maturing obligations and for capital expenditures.

The bond issue was assigned a credit rating of PRS Aaa, with a stable outlook.

PRS Aaa is the highest credit rating on PhilRatings’ long-term issue credit rating scale. Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The issuer’s capacity to meet its financial commitment on the obligation is extremely strong. 

A stable outlook, on the other hand, is defined as the rating is likely to be maintained or to remain unchanged in the next 12 months.

In issuing the rating, PhilRatings considered FDC’s stable revenue stream from its diversified business portfolio,  the company’s main contributing subsidiaries, professional management and growing and well-positioned businesses, particularly in real estate and banking.

FDC’s outstanding rated bonds amounting to 8.8 billion and maturing in 2024 continue to be rated PRS Aaa as well. 

Incorporated on April 27, 1973, FDC is engaged in real estate development, banking and financial services, hotel operations, leasing operations, power generation, and sugar farming and milling business. Being in the business for over four decades, FDC and its subsidiaries have survived the country’s economic downturns, financial crises and political turmoil.

FDC continued to generate steady earnings from all its businesses.

For the first nine months of 2019, FDC reported a 14.2 percent jump in net income to P11.8 billion.  Consolidated revenues and other income increased by 14.9 percent to P62.2 billion.

Banking and real estate operations accounted for 43.5 percent  and 36.3 percent of FDC’s total revenues, respectively.

 For this year, the Filinvest Group is expected to focus on projects and developments in Clark, Pampanga which include the Clark International Airport, Filinvest Mimosa+ Leisure City and the 64-hectare  Phase 1 of the group’s township development in New Clark City.