Filinvest Development plans to tap debt market

MANILA, Philippines  — Filinvest Development Corp. (FDC), the listed conglomerate of the Gotianun Group, plans to tap the debt market to fund its continued diversification as it adjusts to the post-coronavirus disease 2019 or COVID-19 business environment.

“We are considering reviving our bond offering now that the enhanced community quarantine has been lifted. We are evaluating both peso and dollar-denominated bonds given the attractive rates,” FDC president and chief executive officer Josephine Gotianun-Yap said during the company’s annual stockholders meeting.

Just before the imposition of the quarantine, FDC was in the middle of floating P8 billion in peso-denominated bonds.

“But due to the elevated economic uncertainty at that particular point in time, we decided together with our underwriters and bookrunners, to unanimously defer the bond offering to a later date. In April, FDC paid its $300 million bond maturity,” Yap said.

FDC is also looking to issue foreign currency denominated long-term bonds.

The terms and conditions of the issue as well as the timing and amount have yet to finalized.

Proceeds will partly finance the company’s capital expenditures of P25.7 billion  for 2020.

Moving forward, FDC plans to strengthen its logistics leasing business to further build up its recurring income base comprised of power, office and logistics leasing in property, and its new investments in renewable energy.

In the first quarter, FDC reported an eight percent growth in net income to P3 billion on the back of the strong performance of banking subsidiary EastWest Bank.

FDC has also been building up its third leg in the stable power generation business.

Apart from this, the company will also  be “pouring its resources on the development of the 288-hectare Filinvest at New Clark City,  128 hectares will be zoned for the Filinvest Innovation Park.

Property subsidiary Filinvest Land Inc. (FLI) is looking at constructing high specification logistics structures for lease apart from the more traditional leasing of big lot parcels for factories.

The first phase of the Filinvest Innovation Park in New Clark City is due for completion by the second half.

FLI will also launch another logistics park in Calamba, Laguna beside the fully sold Filinvest Technology Park.

It will likewise  launch a 20-hectare development to address the anticipated higher demand for ready built warehouses of the growing logistics and e-commerce industry.