FLI issues P1.2-B convertible bonds to foreign investor

Filinvest Land Inc. (FLI) will be issuing as much as P1.2-billion worth of convertible bonds to an undisclosed foreign institutional investor as part of its continuing efforts to raise additional funds for debt servicing and working capital needs.

FLI corporate information officer Barbara Briones told the Philippine Stock Exchange that the company’s board of directors, chaired by real estate magnate Andrew Gotianun, has approved the bond float which is convertible to shares of the company’s common stocks.

Briones said the bonds are convertible at any time within five years from date of issue at the option of the holder at an initial conversion price, subject to adjustment in certain events, equivalent to the weighted average market price for the shares during the 30 consecutive trading days immediately proceeding the date of issue.

She said that based on calculations, the conversion price will be in the range of between P1.70 to P1.875 per share. At the PSE, FLI shares were the most actively traded stock yesterday, accounting for 14.1 percent of the total P630.5 million turnover. Its price, however, fell 12 centavos to P2.26.

Last year, FLI said it would issue up to P1- billion worth of long-term commercial papers (LTCPs) and plans to sell an additional P2-billion worth of receivables from its reserved housing units as part of the package of measures it is undertaking to lessen its debts.

The additional LTCP issuance would bring up its outstanding debt float to P3 billion, FLI said.

Early last year, the property developer launched several housing projects ranging from affordable to high-end residences, namely Auburn Place in Pamplona, Las Piñas; Woodville in Gen. Trias, Cavite; and Miramonte in San Pedro, Laguna.

Other than residential property development, FLI will start its first industrial project – the 325-hectare Filinvest Technology Park in Calamba, Laguna recently proclaimed by the government as an economic zone.

FLI also maintain a 20-percent stake in Filinvest Alabang Inc., which is developing the Filinvest Corporate City. The 18-hectare Northgate Cyberzone within FCC is now a fully operational information park with the recent completion of two four-story building at the Plaza block of which over 60 percent of the total floor area has been leased out.

The company drives an almost equal mix of sales coming from middle-income and high-end projects accounting for 51 percent of total revenues, while 49 percent are contributed by sales of socialized housing units.