Filinvest raises P10 B from oversubscribed bond offer

The Gotianun Group’s investment holding firm Filinvest Development Corporation (FDC) has raised P10 billion from the oversubscribed first tranche of its P32 billion shelf-registered Peso-Denominated Fixed Rate Bonds.

_{In the photo are the executives of Filinvest Development Corporation (FDC), led by its Chairman Jonathan T. Gotianun, President & CEO Rhoda A. Huang, and COO Ysmael V. Baysa. They were joined by SEC Chairman Emilio Aquino, PDEx President Antonino Nakpil and leaders of the Joint Lead Underwriters and Bookrunners.}

The bonds were listed on the Philippine Dealing & Exchange Corp (PDEx) on Feb. 7. These have an interest rate of 6.3206 percent per annum and a maturity period of 2.5 years.

FDC said in a statement that the bonds garnered significant interest from investors, with subscriptions exceeding the base offer by more than fourfold. The bond offering had a base offer of P7 billion with an oversubscription option of up to P3 billion.

“We saw the success of the unwavering efforts of the Joint Lead Underwriters and Bookrunners with the offer achieving total bids of P31.5 billion, or 4.5 times oversubscription over the base issuance of P7 billion. FDC is committed to living up to the trust the investing community has placed in us,” said FDC President and CEO Rhoda A. Huang.

She added that the net proceeds from this issuance will be used to partially finance its maturing bonds redemption (P7 billion) and capital expenditures (P3 billion) to accelerate business growth. These include financing equity investments in renewable energy and water, hospitality, and digitalization projects

FDC’s bonds were assigned an Issue Credit Rating of PRS Aaa, the highest rating conferred by PhilRatings, which indicates FDC’s strong capacity to meet financial commitments.

The issuance was also assigned a Stable Outlook with Philrating’s view that the ratings will likely remain unchanged in the next 12 months.

Huang said, “we are pleased that PhilRatings has assigned a PRS Aaa rating to our proposed bond issuance. This rating is reflective of our current financial performance and underscores our commitment to drive growth through our diverse business holdings.”

According to Philratings, key considerations in assigning the Issue Credit Ratings were FDC’s conservative and professional management, the proven track record and established brand names of its main contributing subsidiaries, and its stable revenue stream from its diversified business portfolio.

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The article was originally published in Manila Bulletin and written by James A. Loyola.