Fil-Estate to issue $12.5 Million bonds through BVI-registered professional fund

On January 18, 2008, property firm Fil-Estate Land Inc. will issue $12.5 million worth of 5-year convertible bonds that represent the balance of its $25-million bond facility.

Fil-Estate informed the stock exchange that it signed an agreement on the bonds with a professional British Virgin Islands-registered fund Lim Asia Special Situation Master Fund Ltd.

The bonds issued by Fil-Estate can be converted into company shares of stock at a rate of P1.50 per share within 5 years. They carry a coupon rate of 4%, with an intended yield-to-maturity of 14% in case the notes are not converted by holders within 5 years.

According to Fil-Estate, proceeds from the bond issue will be used for funding the development of its projects. The projects to be funded include phases 5 and 6 of Manila Southwoods in Metro Manila; Boracay Villas, Forest Hills in Antipolo City; Sto. Domingo Residential Tower and Thomas Residences in Quezon City; Sta. Barbara Heights in Iloilo province; as well as Newport Hills and Nasugbu Harbortown in Batangas province.

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