CEBU LANDMASTERS, Inc. (CLI) plans to raise P10 billion through bond offerings this year, according to its chairman.
CLI Chairman and Chief Executive Officer Jose R. Soberano III said during a media briefing in Makati City last week that P5 billion in sustainability-linked bonds will be listed by the first week of March, while another P5 billion will be issued by the fourth quarter.
The two planned offerings represent the second and third tranches of CLI’s P15-billion shelf-registered debt securities program, respectively.
“The next tranche of P5 billion is already in the works. The target listing is by the first week of March. We’re already book-building now,” Mr. Soberano said.
“We plan another P5 billion (bond issuance) in the last quarter to close out the P15 billion. These are probably to refinance,” he added.
The second tranche consists of a base offer of up to P3 billion and an oversubscription option of up to P2 billion of peso-denominated Series D Bonds due in 2028 and Series E Bonds due in 2030.
In December last year, CLI said the second tranche received a “PRS Aa plus” credit rating with a stable outlook from the Philippine Ratings Services Corp. (PhilRatings), citing the company’s sustained earnings growth and competitive advantage in the Visayas and Mindanao markets.
Obligations with a “PRS Aa” rating are “high quality” and subject to very low credit risks, reflecting the company’s “capacity to meet financial commitments.” A stable outlook means the rating is likely to be maintained in the next 12 months.
The company listed the first tranche of the P15-billion shelf-registered debt securities program in October 2022.
Last week, CLI said it would allocate P12 billion for the initial phases of its two maiden projects in Luzon, which consist of a horizontal development and a condominium project.
The company is likely to launch its first Luzon project by 2026.
The property developer has launched close to 130 projects across 17 cities since being established in 2003. Its portfolio consists of residential developments, offices, hotels and resorts, co-living and co-working spaces, mixed-use projects, and large-scale townships.
CLI shares were last traded on Jan. 24 at P2.65 apiece. — Revin Mikhael D. Ochave