LEADING developer in Visayas and Mindanao (VisMin) Cebu Landmasters, Inc. (CLI) successfully listed its first fixed-rate bond offering worth P5 billion at the Philippine Dealing and Exchange Corporation last October 7. This is from CLI’s approved shelf registration of a P15 billion debt securities program to be utilized within three years.
The CLI bond issuance is intended to further fuel the company’s growth momentum. Since it was listed in 2017, Cebu Landmasters’ net income has registered a CAGR of 27.78 percent. From P767 million and 28 projects in 2016, the firm posted in 2021 a net income of P2.6 billion and over 100 projects in 16 key VisMin cities.
These CLI bonds received from Philratings a credit rating of Aa plus with a stable outlook. The Philippine Rating Services Corp. commended the company for its sound management and strategies and its competitive advantage in VisMin markets evidenced by continued growth despite the pandemic according to PhilRatings.
The CLI bonds are issued in three tenors: Series A with a maturity of 3.5 years and a coupon rate of 6.4222 percent; Series B with a maturity of 5.5 years and a coupon rate of 6.9884 percent; and Series C with a maturity of seven years and a coupon rate of 7.3649 percent.
BPI Capital Corporation and China Bank Capital Corporation have been appointed as joint issue managers, joint lead underwriters and joint bookrunners. PNB Capital and Investment Corporation, RCBC Capital Corporation and SB Capital Investment Corporation are co-lead underwriters.
The fresh capital has been earmarked for CLI’s core residential business segments in vertical and horizontal housing projects in VisMin.
CLI chairman and CEO Jose Soberano III remarked on Thursday’s development: “CLI’s growth has been closely tied with serving the strong underserved demand for middle-class housing in VisMin. We will continue to lean on that strength as we build out sustainable and vibrant townships in the region. We will further count on these communities of the future to propel the firm further. As new airports and other major infrastructure come onstream to unlock VisMin’s vast potentials, CLI’s developments and estates will serve as catalysts for sustained growth and development.” -30-