Filinvest to raise P1.8B from notes issue

ABS-CBN News

Posted at Feb 16 2009 03:36 PM | Updated as of Feb 16 2009 11:36 PM

Filinvest Development Corp. (FDC), the listed holding firm of the Gotianun family, signed Monday a P1.8 billion corporate notes facility agreement with a group of financial institutions.

FDC will offer unsecured corporate notes, with five years maturity and a fixed interest rate. The notes will be issued as soon as the pre-release documentation is completed.

The company's board, in a meeting on February 11, approved the sale of corporate notes worth as much as P2.5 billion.

"The P2.5 billion is the approval ceiling so we may or may not maximize our issuance under this corporate approval," FDC chief finance officer Francis Caluag said.

He noted that proceeds would be used for general corporate purposes, which may include additional investments in, or advances to, the group's various business segments.

FDC is a holding company engaged in property development, consumer banking and sugar farming/milling/refining.

Earlier, the boards of FDC and wholly-owned FDC Forex have approved combined investments of P2 billion in East West Banking Corp., which will be issuing preferred shares that constitute tier 1 capital.

FDC will subscribe to 120 million preferred shares in EastWest while FDC Forex will get 80 million shares.

EastWest earlier signed a deal to acquire AIG PhilAm Savings Bank Inc., PhilAm Auto Finance & Leasing Inc. and PFL Holdings Inc., all of which represent the consumer businesses of beleaguered American International Group in the Philippines. The deal, which was valued at over P2 billion, would be finalized in the second quarter.