PROPERTY developer Cebu Landmasters, Inc. is increasing the size of its bond issuance to a full-on base of P8 billion — from a P5-billion base with a P3-billion oversubscription option — after strong participation interest from institutions.
The issuance would still be the initial tranche of its shelf-registered P15-billion debt securities program that will be used in three years.
The bonds will have maturities of 3.5, 5.5 and 7 years, similar to the previously announced “indicative maturities ranging from 3.5 to 7 years.”
“The proceeds of the bond offer will be used mainly for the ongoing construction and development of its 55 ongoing projects and 21 pipeline projects,” the company said in a disclosure on Monday.
The company has appointed BPI Capital Corp. and China Bank Capital Corp. as the joint lead issue managers, underwriters and bookrunners. The coupon rates will be determined through a book-building process.
Funds are also said to be deployed in CLI’s large-scale estate projects: the 22-hectare Davao Global Township, the 14-hectare Manresa Town in Cagayan de Oro, and the 100-hectare Minglanilla Techno-Business Park as stated in its previous announcement on the bond issuance.
Previously, its peso-denominated fixed-rate issuance received an Aa plus rating from Philippine Rating Services Corp. which means that it is of high quality and is subject to very low credit risk.
The company’s target capital expenditure for the year is at P13 billion as stated in its information statement released on May 23.
On the stock market on Monday, CLI shares inched up by 2.88% or P0.07 to P2.50 apiece. — Justine Irish DP. Tabile