According to Philratings, the PRS Aaa rating assigned to FLI’s bonds reflect the following key considerations by Philratings: healthy growth of the company’s real estate and leasing operations resulting in strong income generation; sound debt position and financial flexibility; FLI’s established brand name and diversified portfolio; and the relatively favorable economic and industry conditions.
The bonds will have a term of seven (7) years, and an interest rate of 6.2731% per annum. The bonds will be issued in minimum denominations of Php50,000 and increments of Php10,000 thereafter.
The offer period will be from May 28 to June 1, 2012, while the issue date has been set for June 8, 2012.
The proceeds from the bond sale will be used to partially finance FLI’s capital expenditures for 2012. Earlier this year, FLI disclosed that its capex budget for 2012 is at Php15 billion. In 2012, FLI plans to launch Php 14,5 billion worth of residential units from 14 new projects and 19 additional phases of existing projects. The Company is also constructing a BPO office building along EDSA, Mandaluyong City with a Gross Leasable Area (GLA) of 7,000 square meters and a building in Northgate Cyberzone with a GLA of 20,000 square meters while construction of another building, called Plaz@ E will commence within the year. It will also break ground on a 15,000 square meter BPO office building in Lahug, Cebu this month. Meanwhile, the expansion of Festival Supermall in Filinvest City is underway, as well as the development of the Il Corso lifestyle strip in Citta di Mare, in South Road Properties, Cebu.
BDO Capital and Investment Corporation, BPI Capital Corporation and First Metro Investment Corporation are the Joint Issue Managers of the bond.
BDO Capital and Investment Corporation, BPI Capital Corporation, First Metro Investment Corporation and Hongkong and Shanghai Banking Corporation are the Joint Lead Underwriters.
China Banking Corporation is the Co-Lead Underwriter. East West Banking Corporation is the Selling Agent.
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