Far Eastern University Inc. (FEU) of the Montinola family is borrowing P1 billion from BDO Unibank Inc. for the development of its Alabang campus.

In a disclosure to the Philippine Stock Exchange, FEU said its board has authorized management to apply and secure a financial credit accommodation of up to P1 billion from BDO.

The listed educational institution said the amount would be used to develop the facilities of its newest campus, FEU Alabang.

“The corporation is benefitted by the issuance of the said financial/credit accommodation of the bank and that the same is essential and necessary in carrying out its corporate purposes,” FEU said.

FEU said the loan would be under such terms and conditions which BDO may prescribe.

In 2012, FEU set up a new company, FEU Alabang Inc., with an initial authorized capital of P100 million to undertake the development of the Alabang campus.

FEU Alabang will be situated on a 2.2-hectare lot within the Woods District of Filinvest Corporate City. The property was acquired from Filinvest Alabang Inc., a subsidiary of Filinvest Development Corp. of the Gotianun family.

FEU was incorporated in 1933 as a private, non-sectarian institution of learning and became a listed corporation in 1986.

In 2010, it started operations of a Makati campus. FEU Makati offers masteral program in business administration and baccalaureate programs in accountancy, accounting technology, information technology and business administration.

Source: PhilStar