Property developer Filinvest Land Inc. of the Gotianun Group successfully raised P11.9 billion from a fixed-rate retail bond offering amid strong demand from investors.
FLI said in a statement the bonds, which were listed on Philippine Dealing & Exchange Corp on Thursday, were 10 times oversubscribed.
The bond offering represents the third tranche to the group’s P30-billion debt securities program approved by the Securities and Exchange Commission.
BDO Capital & Investments Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investments Corp., RCBC Capital Corp. and SB Capital Corp. were the underwriters of the offering.
FLI plans to use the net proceeds from the offering to partially fund capital expenditures to expand its affordable and middle income residential developments and refinance maturing obligations.
“We have a strong line up of over P30 billion new residential projects to be rolled out in the coming year in new territories and expansion in our 32 existing medium rise building townships nationwide,” said FLI president Tristan Las Marias.
Las Marias said the group plans to launch residential projects in new areas like Bataan, Sta. Manila in Bulacan, Naga in Camarines Sur and General Santos, South Cotabato.
“Housing continues to grow at stable rate despite the pandemic. We expect this to further grow as we transition out of the pandemic,” Las Marias said.
FLI will use a portion of the proceeds to support new businesses, such as co-living and co-working spaces. Its first two co-living buildings in Clark Mimosa are scheduled to start operations in the third quarter while two more buildings are under construction.
The property developer has also ventured into logistics. Industrial parks with ready-built warehouses will soon rise in New Clark City in Tarlac and Filinvest Technopark in Calamba, Laguna.
The industrial parks will cater primarily to companies engaged in logistics, data centers, e-commerce, light manufacturing and storage operators.
“This will add to our portfolio of recurring income projects, which we aim to infuse into Filinvest REIT a the right time,” said FLI chief executive Josephine Gotianun-Yap.