CDO to benefit from top debt grade of P7-B FLI Bond Float

Dec 22, 2013

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Cagayan de Oro will be one of the areas to benefit from the highest rating recently assigned to Filinvest Land Inc.(FLI)’s planned PhP 7-billion bond float.

 

Mayor Oscar S. Moreno cuts the ribbon to Filinvest Land's One Oasis Cagayan de Oro Mid-Rise Condo project with the assistance of Josephine Gotianun-Yap, President and CEO of FLI.

In a statement, Philippine Ratings Services (PhilRatings) assigned a PRS Aaa issue credit rating to FLI’s proposed P5 billion fixed-rate retail bond offering, with an oversubscription option of PhP 2 billion.

 

The credit rating further affirms Filinvest’s stability as a company. Filinvest, owned by the Gotianun family, has been into real estate for more than 50 years and this expertise had been brought to Cagayan de Oro to fulfill the Filipino dream to own a home.

 

Filinvest Land, Inc. (FLI) reported that its net income in the first nine months of 2013 rose by 22% year-on-year to Php2.438 billion from the Php2.006 billion registered in the nine months of 2012.

 

Growth in Real Estate Sales and Rental Income primarily drove the rise in total revenues to Php8.470 billion, a 26% increase versus the same period last year.

 

FLI’s Real Estate Sales increased 30% to PhP 6.974 billion in the first three months of 2013. On the other hand, Rental Revenues reached PhP 1.496 billion, 8% more than January to September of 2012.

 

Major contributors to the good sales performance during the period included the launching of new mid-rise buildings (MRBs) and house-and-lot projects in diverse new locations, intensive marketing activities and attractive pricing.

 

Some of the new MRBs and high-rise building that boosted sales include San Remo Oasis, The Levels and Studio Zen.

 

Growth in rental revenues is mainly attributable to rental income at Grand Cenia and higher occupancy in both mall and offices spaces in EDSA Transcom Building, Vector Two and Plaza B, and three ready-built factories in Filinvest  Technology Park in Calamba, Laguna, commercial spaces in Brentville, Mamplasan, Laguna and commercial lots in Tagaytay.

 

FLI in Cagayan de Oro

 

FLI’s first venture in the region is One Oasis Cagayan de Oro, the first Mid-Rise Development in the city’s downtown central business districts.

 

The Asian-Balinese themed development along Rosario Limketkai Avenue has five medium rise buildings (MRB). Work has started on the first seven storey unit and sales have been brisk for its 314 one and two bedroom units. It boasts of three-level podium parking, residential parking and driver’s lounge.

 

One Oasis unique advantage compared to nearby projects is its resort themed amenities which occupy half of its 2.7 hectare areas including open spaces and landscaped gardens, hence, its tagline

“Your Patch of Green in the City”. Complete with all the facilities of modern living, it’s just minutes away from shopping malls, schools, churches, hospitals and offices.

 

As one of the country’s leading conglomerates, FLI long noted what the National Competitiveness Council (NCC) recently verified officially: Cagayan de Oro is the Philippines most competitive city in 2012.

 

Credit Upgrade

 

FLI has over 100 projects in 39 cities across the country, with a land bank of 2,251 hectares as of end-2012, according to PhilRatings.

“Despite the aggressive expansion of the company, its debt-to-equity ratio and debt-to-capitalization ratio remained relatively conservative at 0.57x and 36.2%, respectively, as of the first half of 2013,” PhilRatings said.

At the same time, the debt watcher noted “prospects for the real estate industry continue to remain strong, with demand remaining highly supportive given the existence of a substantial housing backlog, a growing business process outsourcing industry and rising disposable incomes.”

“Such factors bode well for the continued expansion plans of the company,” PhilRatings said.


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