Filinvest Land Issuing PhP5B to PhP7B Worth of Bonds

Manila—(PHStocks)—Filinvest Land Inc. (PSE: FLI) will be offering PhP5 billion fixed-rate retail bonds, with an oversubscription option of PhP2 billion. The bonds will have a tenor of 7 to 10 years. The bonds will be issued in minimum denominations of PhP50,000 and increments of PhP10,000 thereafter. Tentative offer period of the bonds is this month.

The Philippine Rating Services Corporation (Philratings) has assigned a PRS Aaa rating to the bonds, the highest possible rating for a bond.

The ratings for FLI’s outstanding PhP4.5 billion bonds due in 2014, PhP3 billion bonds due in 2016, PhP7 billion bonds due in 2019 were also maintained at PRS Aaa.

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

Further, Philratings’ rating reflects the following factors: “the company’s sustained growth of real estate and easing perations resulting in strong income generation; its conservative debt position and high financial flexibility; stablished brand name and track record; its focused strategy with a geographically diverse portfolio and substantial landbank for future growth; and economic and industry conditions are seen to remain favorable in the medium-term.”

The proceeds of the Bonds will be used to partially finance projects that are targeted to be undertaken by the Company in the fourth quarter of 2013 and in 2014, the total capital expenditure of which amounts to PhP27.3 billion. The capex includes PhP9.9 billion for mid-rise and high-rise projects, PhP2.3 billion for horizontal or subdivision projects, PhP5.5 billion for office buildings, PhP7.7 billion for commercial/retail projects, and PhP1.9 billion for raw land acquisition.

BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp. (FMIC) are the Joint issue Managers of the bond.

BDO Capital and Investment, BPI Capital, FMIC and Hongkong and Shanghai Banking Corp. (HSBC) are the Joint Lead Underwriters.

East West Banking Corp. (PSE: EW) is a Selling Agent.

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