Filinvest Land Inc., the property development unit of the Gotianun family, plans to file with the Securities and Exchange Commission an application for shelf registration of P30 billion worth of bonds.
Filinvest Land chief finance officer Nelson Bona said in an interview at the sidelines of a good governance forum the company aimed to issue the initial tranche worth about P10 billion by the first quarter of 2017.
Proceeds from the fund raising activity will be used to finance capital expenditures, refinance existing debt and fund real estate projects geared towards expanding recurring income.
“We plan to issue P10 billion in bonds annually over the next three years,” Bona said.
“We plan to file for a three-year shelf registration because the key there is getting the regulatory approval. It is easier, if the intention is to expand significantly over the next few years, to prepare for that,” Bona said.
“We plan to do P10 billion annually over the next three years,” he said.
Filinvest Land president Josephine Gotianun-Yap said the company remained focused on boosting recurring income despite concerns over the future of the business process outsourcing industry because of US president Donald Trump’s protectionist views.
“We are pioneer in the BPO industry and we also went through the financial recession. Normally, we can adjust and delay some of the projects. It’s easy to adjust to the market,” Yap said.
Yap said the company’s completed BPO building were now 100-percent leased.
The company is also getting strong interest in BPO buildings that have yet to be completed.