Filinvest Land Inc. reported that the Issue Credit Rating of subsdiary Cyberzone Properties, Inc.’s (CPI) P6 billion outstanding bonds was maintained at the highest PRS Aaa, with a Stable Outlook, by Philippine Rating Services Corporation (PhilRatings).
In a disclosure to the Philippine Stock Exchange, FLI said the maturity date of the CPI bonds is on January 7, 2023.
The proceeds of the bonds were used to partially finance the capital expenditure requirements of the company’s existing buildings and buildings under construction.
Completed projects as of end-June 2020 that were partially financed by the bonds’ proceeds include: Vector Three, Filinvest Axis Towers 1 and 2 and Phase 1 of Axis Parking. CPI’s buildings under construction that are partially financed by the bonds’ proceeds include: Filinvest Axis Tower 3 and Cebu Cyberzone Towers 3 and 4.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. A Stable Outlook means that the rating assigned is likely to remain unchanged in the next 12 months.
In assigning the rating and Outlook, PhilRatings took into account the firm’s highly competitive and focused office portfolio, complemented by an established brand name and a highly-experienced management team.
PhilRatings also noted the resilient industry amid the ongoing COVID-19 pandemic; CPI’s sustained profitability with good growth prospects in the medium term despite delays in the completion of pipeline buildings; and manageable liquidity and capitalization levels.
CPI maintains a highly competitive and attractive portfolio of office buildings which cater mainly to multinational Business Process Outsourcing (BPO) firms.
Most of the company’s buildings are located in Northgate Cyberzone, a Philippine Economic Zone Authority (PEZA)-registered IT Park in Filinvest City, Alabang.
Competitive rental rates and fiscal and non-fiscal incentives arising from its PEZA registration attract BPO companies to lease office space in Northgate Cyberzone.
Some of CPI’s buildings are also located in Cebu Cyberzone in Lahug, Cebu City, where locators likewise enjoy various fiscal and non-fiscal benefits.
As of end-June 2020, CPI had a total GLA of 383,144 sqm. This is expected to further increase to 602,296 sqm by 2025 as CPI completes the construction of its ongoing and planned projects.
Source: Manila Bulletin
