Filinvest Land’s P12-billion bond offering gets ‘PRS Aaa’ rating

Filinvest Land Inc., the real estate arm of the Gotianun family, said Friday that its planned P12 billion bond offering received a “PRS Aaa” rating from the Philippine Rating Services Corp. (PhilRatings).

A “PRS Aaa” rating indicates the highest quality with minimal credit risk and that the issuer has the financial capability to meet its financial commitment on the obligation.

The rating also carries a stable outlook, meaning PhilRatings is not likely to change its decision within the next 12 months.

“We are grateful to PhilRatings for the credit rating they issued for our most recent bond issuance,” said FLI President and CEO Tristan Las Marias. “This is a testament to the confidence of the capital market community in our vision of continuing to provide best-value homes to more customers and improve their lifestyles in pursuit of the Filipino dream.”

FLI’s proposed P12 billion bonds have a base amount of P9 billion with an oversubscription option of P3 billion. Pricing for the bonds will be set in the coming months. FLI intends to list the bonds with the Philippine Dealing and Exchange Corp. (PDEx).

PhilRatings cited FLI’s established brand name, track record, geographically diverse real estate products, and substantial land bank for future expansion.

The rating agency also noted FLI’s sound growth strategies and solid foothold in the affordable and middle-income segments. More than 85% of the company’s total real estate sales were from the middle-income segment as of end-September.

FLI also has strong profit performance in the first nine months of the year and has positive operating cash flows and ample liquidity.

The bonds will be issued as the second tranche from the company’s P35 billion shelf registration approved by the Securities and Exchange Commission in 2023.