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SEC approves FLI's P7-B debt note issuance.

The Securities and Exchange Commission (SEC) has finally allowed Filinvest Land, Inc. (FLI) to tap the debt market for its P7-billion fundraising, which will be used by the company to pay its debt and bankroll its 2015 capital spending.

The property arm of the Gotinanun group particularly got the approval of the SEC during the regulatory agency's weekly commission meeting held the previous day.

Specifically, Filinvest Land intends to offer unsecured fixed-rate peso retail bonds with an aggregate principal amount of P5 billion with an oversubscription option of up to P2 billion.

The bonds are comprised of seven year fixed rate bonds due in 2021 carrying a coupon rate of up to 5.5 percent per annum and ten-year fixed rate bonds due in 2024 which carries a coupon rate of up to 5.9 percent per annum.

"The net proceeds of the issue shall be used for the repayment of debt and to partially finance its capital expenditure requirements for the fourth quarter of 2014 and 2015," Filinvest Land said in a prospectus submitted to SEC in September.

Of the total proceeds, P4.95 billion will be used by the company to refinance its bonds and debt expiring this quarter and the second quarter of 2015, while the rest will be used to bankroll its capital requirements.

However, the company has not yet determined the offer period for the bonds issuance.

The joint issue manager for the transaction is BDO Capital and Investment Corp., while BPI Capital Corp. and First Metro Investment Corp. serve as the joint bookrunners and joint lead underwriters.

In November last year, the listed property developer also raised as much as P7 billion from a bond issuance.

FLI's previously listed security, the P4.3 billion seven year bonds and P2.7 billion ten year bonds, carry a coupon rate of 4.8562 percent and 5.4333 percent per annum respectively.

Local debt watcher Philippine Rating Services Corp. (Philratings) assigned the PRS Aaa score for FLI's long-term bonds.


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Title Annotation:Business News
Publication:Manila Bulletin
Date:Nov 21, 2014
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