February 7, 2024 – Filinvest Development Corporation (FDC) has listed the first tranche of its ₱32 billion fixed rate bonds on the Philippine Dealing & Exchange Corp (PDEx). The bond issuance consisted of a base offer of ₱7 billion, with an option for oversubscription of up to ₱3.0 billion. At an interest rate of 6.3206% per annum and a maturity period of 2.5 years, the bonds garnered significant interest from investors, with subscriptions exceeding the base offer by more than fourfold.
“We saw the success of the unwavering efforts of the Joint Lead Underwriters and Bookrunners with the offer achieving total bids of PHP31.5 billion, or 4.5 times oversubscription over the base issuance of PHP7 billion. FDC is committed to living up to the trust the investing community has placed in us,” shared Rhoda A. Huang, President and CEO of FDC.
“The net proceeds from this issuance will be used to partially finance our maturing bonds redemption and capital expenditures to accelerate the growth of our businesses. This includes financing our equity investments in renewable energy and water, hospitality, and digitalization projects,” she added.
FDC currently has strategic holdings in key industries such as real estate development and leasing through Filinvest Land Inc. and Filinvest Alabang Inc., banking and financial services through EastWest Bank, hotel and resort development and management through Filinvest Hospitality Corp., power generation through FDC Utilities Inc., and agriculture through Pacific Sugar Holdings Corp.
Filinvest’s bond issuance was marked with a bell-ringing ceremony at the PDEx on February 7, 2024. The Filinvest Group was led by its Chairman Jonathan T. Gotianun, President and CEO Rhoda A. Huang, and COO Ysmael V. Baysa. The Securities and Exchange Commission (SEC) was represented by its Chairman Emilio Aquino, while PDEx was led by its President and CEO Antonino Nakpil.
The SEC likewise congratulated the Filinvest Group for its return to the local debt capital market after ten years. The SEC efficiently processed FDC’s application within 28 days, signaling a proactive approach to facilitating bond market participation among issuers.
“There is no doubt in saying that FDC, as an industry leader, is certain to reach promising heights and might even surpass excellence in achieving all their goals. To Filinvest Development Corporation, we wish you and express our heartfelt gratitude for all your efforts in contributing to our nation’s advancement and economic growth,” said SEC Chairman Emilio Aquino.
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.
