MANILA, Philippines — Filinvest Land Inc. borrowed P10 billion from investors during a recent bond offering, which was meant to raise cash to fund the company's capital expenditures.
In a disclosure to the Philippine Stock Exchange on Tuesday, the Gotianun-led landlord said there was great demand for the debt papers, which were payable in four and six years.
Total orders booked for the bonds were four times bigger than the original size of the offering, which was set at P8 billion. This, in turn, helped the company borrow money at cheaper costs.
The securities were listed in the fixed-income bourse also on Tuesday.
"FLI is growing its recurring income portfolio particularly in the logistics/industrial and office space," Josephine Gotianun-Yap, company president and chief executive, said.
“FLI is encouraged by the performance of the residential sector in the first nine months of the year with residential revenues increasing by 23%, we are hopeful that we are on the way to economic recovery,” Gotianun-Yap added.
The latest issuance was the second tranche of a P30-billion bond program that the company registered in 2020. Filinvest sold the first tranche amounting to P8.1 billion in November last year.
This year, Filinvest joined other property giants and listed its own real estate investment trust (REIT) firm to help the company recycle capital and reinvest earnings in portfolio expansion.
Shares in Filinvest finished trading on Tuesday down 0.91% to P1.09 each.