FLI gets top credit rating for proposed P10 billion bond offer

MANILA, Philippines — Listed property developer Filinvest Land Inc. (FLI) has obtained the highest credit rating from local debt watcher Philippine Rating Services Corp. (PhilRatings) for its proposed bond issuance of up to P10 billion.

PhilRatings assigned an issue credit rating of PRS Aaa, the highest rating, to FLI’s bond issue consisting of P8 billion in primary offer and an oversubscription option of P2 billion.

The bonds will have maturities ranging from four to six years but the exact date of issuance has yet to be published.

The debt watcher, meanwhile, also maintained the PRS Aaa issue credit rating for each of the outstanding bonds of FLI, with a total amount of P25.8 billion.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.

Each of the ratings was also assigned a stable outlook which means the rating is likely to remain unchanged in the next 12 months.

In assigning the issue credit ratings, PhilRatings took into account FLI’s track record, with geographically diverse real estate products and substantial land bank for future expansion; its sound growth strategies, focused on building a balanced mix of real estate sales and recurring income; and muted earnings in view of the current crisis.

FLI is the real estate arm of the Gotianun-owned Filinvest Development Corp. At present, it is in 55 cities and towns in 22 provinces in the Philippines.

Its portfolio includes different real estate developments, from socialized and affordable housing to middle-income and high-end housing, various types of subdivision lots, medium-rise and high-rise residential buildings, farm estates, industrial parks, residential resort projects, condotels, and condominium buildings.

In addition, it leases out office and commercial space in numerous locations across the country.