SEC Approves Filinvest’s Triple-A Rated Fixed Rate Bonds

January 2, 2024
by Filinvest Development Corporation

January 2, 2024 – Filinvest Development Corporation (FDC) has obtained approval from the Securities and Exchange Commission (SEC) for its upcoming bond issuance. The commission approved FDC’s fixed rate bonds comprising a base offer of ₱7 billion with an oversubscription option of up to ₱3.0 billion. The issuance, scheduled for February 7, 2024, marks the first tranche of the company’s new three-year shelf registration amounting to ₱32 billion.

The bonds were recently assigned an Issue Credit Rating of PRS Aaa, the highest rating conferred by PhilRatings, which is indicative of FDC’s strong capacity to meet financial commitments. The issuance was also assigned a Stable Outlook with Philrating’s view that the ratings will likely remain unchanged in the next 12 months.

The net proceeds will be allocated to partially finance the company’s maturing bonds amounting to ₱7 billion and fulfill capital expenditure requirements totaling ₱3 billion.

“The approval of our bonds paves the way for an enticing and stable investment opportunity for investors while funding the company’s expansion,” said FDC President and CEO Rhoda A. Huang. “We are also pleased that PhilRatings has assigned a PRS Aaa rating to our proposed bond issuance. This rating is reflective of our current financial performance and underscores our commitment to drive growth through our diverse business holdings.”

According to Philratings, key considerations in assigning the Issue Credit Ratings were FDC’s conservative and professional management, the proven track record and established brand names of its main contributing subsidiaries, and its stable revenue stream from its diversified business portfolio.

The Filinvest Group reported strong financial results with a notable net income attributable to equity holders of the parent company amounting to ₱5.9 billion for the first nine months of 2023. This marked a 57 percent increase from the ₱3.8 billion net income generated during the corresponding period last year. The substantial growth was propelled by a 26 percent increase in total revenues and other income, surging from ₱51.1 billion in the first nine months of 2022 to ₱64.6 billion in the same period in 2023. Despite challenges posed by high interest and inflation rates, FDC’s diversified business segments, spanning banking, real estate, hotels, power, and sugar, reflected broad-based growth in both revenues and profits.