FBDC renews registration of P1-B papers

Fort Bonifacio Development Corp. (FBDC), the joint venture vehicle developing the Bonifacio Global city, is renewing the registration of P1-billion worth of short-term commercial papers (STCPs) for the partial financing needs of the project.

The debt papers will be handled by lead selling agent and syndicate manager Wise Capital Investment & Trust Co. Inc. and filed before the Securities and Exchange Commission (SEC).

FBDC, a 55-45 joint venture between the Metro Pacific-led Bonifacio Land Corp. and the Bases Conversion Development Authority, had earlier been given an exemption by the SEC from a committed credit line agreement required from banks since it has met all standard ratios except for the return on equity at below eight percent.

The SEC‘s Money Market Operations Department said the company was able to comply with the alternative net profit margin, exceeding the minimum three percent ratio.

As of end-2000, FBDC has availed itself of about P460 million in long-term loans with local banks and financial institutions, on top of a P1.05-billion medium-term financing under a trust agreement with the Hong Kong & Shanghai Banking Corp. and other investors, to be backed by Global City Receivables (GCRs).

Credit rating agency PhilRatings has given FBDC’s STCP float a satisfactory mark of PRS 3, indicating the company‘s capability for payment of debt instrument issue on both interest and principal.

PhilRatings said it considered FBDC’s near-term earnings and cash flow vulnerability in determining its credit rating.

It also cited FBDC’s management capabilities and the fairly strong parent support from Metro Pacific, the local flagship of Hong Kong-based conglomerate First Pacific Co. Ltd.