Sun Life to extend P1-B loan to Filinvest Land

Sun Life Financial is extending a P1-billion loan to Filinvest Land Inc. to refinance Filinvest’s maturing loans and fund its expansion. This was disclosed to The STAR by Sun Life Financial president and chief executive officer Lorenzo Tan who further said that the initial tranche amounting to P390 million has already been released to Filinvest.

Sun Life financial executive vice president Henry Joseph M. Herrera said that at least two more tranches amounting to P610 million would be released by the insurance firm to Filinvest in the first quarter of 2006.

Tan, who was the former president of the Philippine National Bank (PNB), said that Sun Life is trying to expand its corporate loan portfolio which currently has outstanding loans of P6 billion.

Sun Life Financial, Herrera elaborated, has actually extended loans to other blue chip companies that include the Philippine Long Distance Telephone Co., Globe Telecoms, Ayala Alabang, San Miguel Corp. and LaFarge Cement.

Sun Life Financial, Herrera assured, is very selective in granting loans and normally lends as part of a syndication of creditors.

Sun Life’s selective loan grants, Herrera said, has allowed the insurance firm to maintain a zero non-performing loan (NPL) level.

However, in this particular loan to Filinvest, Herrera admitted, Sun Life decided to finance the entire loan by itself. Filinvest is owned by the Gotianum Family.

FLI recently embarked on a P120 million pioneer business park for micro, small and medium enterprises.

The MSME business park is in line with President Arroyo’s 10-point Economic Agenda to create more jobs, expand local enterprise and enhance the development of micro, small and medium enterprises (MSMEs).

The development of MSME business parks is included in the 2005 Investment Priorities Plan of the Department of Trade and Industry (DTI) and is consistent with the government’s objective to develop and support two million entrepreneurs until 2010.

FLI’s MSME business park project will be entitled to incentives. FLI has applied for BOI registration on a pioneer status for its recent project.

Development cost for the project is estimated to be between P100 million to P120 million with a total 951 lots to be sold. Filinvest plans to tap overseas Filipino workers (OFWs), entrepreneurs with small starting capital, local government units for their livelihood programs, subcontractors of large manufacturing companies, retired or retiring Filipino employees, local inventors, existing local MSMEs gearing for expansion, and foreign businesses involved in information and communications technology (ICT).

Light industries such as garments and fashion accessories, houseware and home furnishings, footwear and leather goods, holiday décor and giftware, artworks, metal craft and woodcraft, processed food, are the targetted locators.