Gotianun’s Filinvest studies bond, equity offering

GOTIANUN-LED Filinvest Development Corp. (FDC) is planning to raise capital this year through both debt and equity measures in the local and offshore markets.

In the company’s annual stockholders’ meeting held virtually Monday, FDC President and CEO L. Josephine G. Yap said the company is currently studying capital raising initiatives to support business expansion.

“We are considering reviving our bond offering now that the (lockdown) has been lifted. We’re evaluating both peso- and US dollar-denominated bonds given the attractive rates,” she said, referring to FDC’s deferred plan to float an P8-billion bond in March.

Ms. Yap added FDC is “especially keen to raise equity… to unlock its untapped value and share it to the public.” FDC’s public float is 10.8% at present and Ms. Yap said the company is just waiting for the right timing for an offering.

FDC has set its budget for capital expenditures this year at P25.7 billion, which it intends to use to support expansion and diversification efforts. Ms. Yap also said FDC is looking out for possible acquisitions.

“To maintain this posture, it is imperative to strike a careful balance of equity and debt,” she said.

The company’s equity stood at P132 billion at the end of the first quarter, with its net debt-to-equity ratio at 0.54:1.

During the three-month period, amid the coronavirus disease 2019 (COVID-19) pandemic, FDC posted an 8% increase in earnings to P3 billion. Its banking unit led the growth with a P2.3-billion contribution, higher by 75% from last year.

Ms. Yap said despite the continuing rise in its financials, FDC will be more cautious and will adopt a “more flexible short-term planning process, while still being mindful of our medium-term strategy.”

Focus will be on strengthening recurring income base such as power, office and logistics leasing and new investments in renewable energy.

“Our strategy is to optimize our existing asset base while leveraging on digital and technology to answer to the changing needs of our markets,” Ms. Yap said.

Among the plans FDC expects to materialize this year are recognizing income from its P15-billion multi-tower mixed-use complex in Filinvest City by the second quarter, and completing the 64-hectare phase 1 of Filinvest Innovation Park in New Clark City by the second half.

“Our disciplined and strategic approach to financial management has prepared us for this current global health and economic crisis. The resilience of our management teams and experience surviving several global and local crises have provided us some invaluable insights,” Ms. Yap said.

Shares in FDC at the stock exchange closed two centavos or 0.25% lower at P8.10 apiece on Monday. — Denise A. Valdez