FLI Issues ₱11.57B Bonds for Debt Refinancing, Growth

Filinvest Land Inc. (FLI), the property arm of the Gotianun family, has approved the issuance of ₱11.57 billion in fixed-rate, peso-denominated bonds to refinance existing debt and bankroll new developments across key provincial growth corridors in the Philippines. The move marks the third tranche of the company’s ₱35-billion shelf registration program and signals renewed confidence in the domestic bond market.

The approval was disclosed to the Philippine Stock Exchange on February 23, 2026. The bonds will carry maturities of up to 10 years, with final pricing and offer details subject to regulatory clearance.

Strengthening the Balance Sheet

FLI said the proceeds would be used primarily to refinance maturing obligations while funding capital expenditures in residential, retail and mixed-use projects.

“This bond issuance allows us to further strengthen our capital structure while funding projects that directly support our growth priorities,” said FLI President and CEO Tristan Las Marias. “We remain focused on disciplined expansion, operational efficiency, and delivering long-term value to our stakeholders.”

By refinancing debt through longer-term instruments, companies like FLI effectively replace short-term liabilities with more predictable obligations — akin to converting a series of near-term bills into a structured installment plan. The strategy shields cash flow from sudden repayment pressure while freeing capital for expansion.

Focused on the Regions

The fresh capital will support projects largely outside Metro Manila, reflecting a sustained industry shift toward regional urbanisation and decentralisation.

Residential developments earmarked for funding include:

• Walk-up condominiums in San Rafael, Bulacan and Leganes, Iloilo
• The expansion of The Glens in San Pedro, Laguna
• Additional phases of Sandia Homes in Tanauan, Batangas

FLI will also channel funds into enhancing regional mall assets and expanding its industrial platform in strategic corridors.

In Pampanga, the company continues to develop two major estates within the Clark Freeport Special Economic Zone: the 288-hectare Filinvest New Clark City and the 201-hectare Filinvest Mimosa+ Leisure City. These projects fall under the regulatory framework of the Clark Development Corporation.

“We will continue investing in projects that address real demand and contribute meaningfully to national and regional progress,” Las Marias said.

Riding an Improving Bond Market

The issuance comes as liquidity conditions in the Philippine fixed-income market show signs of improvement. FLI noted “renewed investor appetite for high-quality corporate credits,” describing the bond offer as a reflection of confidence in developers with established track records.

The company previously raised ₱12 billion from its second bond tranche in March 2025, funds that supported retail and industrial expansion.

Under a shelf registration program approved by the Securities and Exchange Commission, large corporations can issue bonds in multiple tranches over time without seeking fresh approval for each offer. FLI’s total program is capped at ₱35 billion.

Solid 2025 Financial Performance

The fundraising follows a year of steady growth for FLI. In 2025, the company posted:

• ₱25.9 billion in total revenues, up 6 percent
• ₱4.81 billion in net income, a 4 percent increase
• ₱16.27 billion in real estate revenues, driven largely by residential sales

Residential revenues alone reached ₱15.92 billion, while industrial lot sales contributed ₱357 million.

Despite higher borrowing costs, FLI reported sustained demand in its target segments. “Elevated borrowing costs required homebuyers to be more selective, yet demand remained resilient in the affordable and mid-income segments, particularly for RFO units in regional growth areas,” the company said.

Balancing Growth and Risk

While the bond issuance is structured largely to refinance debt rather than materially expand borrowings, fixed-rate obligations require steady revenue generation to remain sustainable. Market observers typically assess such moves against broader economic conditions, including interest rate trends and housing demand.

For FLI, the strategy rests on diversification. The company operates across residential, retail, industrial and office segments, with a footprint that spans Metro Manila and emerging provincial centres.

“With sound capitalization, an expanding portfolio of integrated estates, and a disciplined approach to capital deployment, FLI is well positioned to manage near-term challenges while pursuing steady, value-accretive growth,” the company said.

Implications for Communities

Beyond balance sheets, the developments financed by the bond offer are expected to generate employment during construction and in ongoing retail and estate operations. Regional mall expansions and township projects may also improve access to housing, jobs and consumer services outside the capital.

However, sustained growth in provincial corridors will depend not only on private investment but also on complementary public infrastructure — transport, utilities and water systems — to ensure that expanding communities remain viable and affordable.

Final terms of the bond issuance, including coupon rates and subscription schedules, will be announced once regulatory clearances are secured.