Cyberzone Properties Inc., a wholly owned unit of Filinvest Land Inc., has successfully raised P6 billion from the issuance of fixed rate bonds on strong demand from investors.
Filinvest Land said in a disclosure to the stock exchange the 5.5-year fixed rate bonds were 2.65 times oversubscribed from the base offer of P5 billion, prompting the company to exercise an over-allotment option of P1 billion.
The bonds, which were listed with Philippine Dealing and Exchange Corp. on Friday, carry a coupon rate of 5.0496 a year.
Filinvest Land president Josephine Gotianun-Yap said the company would use proceeds from the offering to finance Cyberzone’s aggressive build-up program involving the construction and operation of five additional buildings in Northgate Cyberzone in Filinvest CIty, Alabang and three new towers in Cybezone Cebu in Lahug City.
“We continue to be optimistic about the BPO industry and the overall office leasing market,” Yap said.
Cyberzone”s BPO portfolio consists of 18 operational buildings with 239,823 square meters of gross leasable area.
Cyberzone in 2017 will complete three new buildings that will add 103,000 square meters of additional leasable space or a 43-percent increase from the end 2016 level.
“By 2020, CPI’s total GLA is targeted to increase to 492,720 sq.m,” Yap said.
The company tapped BDO Capital and Investments Corp., BPI Capital Corp., EastWest Baking Corp. and First Metro Investments Corp. as joint issue managers and book runners of the bond offering. PNB Capital and Investments Corp and SB Capital are co-lead underwriters.
The bonds received a credit rating of PRS Aaa from Philippine Rating Services Corp.
PRS Aaa is the highest rating possible with minimal credit risk. This means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong.
The assigned issue credit rating and outlook reflect the company’s competitive and focused office portfolio, which has been consistently growing while maintaining high occupancy rates amid the supportive economy and industry outlook,.
It also considered Filinvest Group’s established brand name and track record, along with a highly-experienced management team, consistently growing profitability with strong margins and more than ample liquidity in relation to debt servicing requirements.