CLI raising P5 B from notes offering to finance projects

Published April 25, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

VisMin developer Cebu Landmasters Inc. is raising P5 billion from a planned issuance of corporate notes to partially fund its projects, including those in Davao and Cebu.

In a statement, Philippine Rating Services Corporation (PhilRatings) said it has assigned an Issue Credit Rating of PRS Aa, with a Stable Outlook, for CLI’s planned corporate notes offering.

The proceeds will be used to partially finance its projects, including the Davao Matina Business Park and the Ming-Mori Technobusiness Park in Minglanilla, Cebu, among others.

Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong.

Furthermore, a Stable Outlook is assigned when a rating is likely to be maintained or to remain unchanged in the next twelve months.

PhilRatings said the rating and outlook reflect the CL’s sound management and strategy, with a competitive advantage in the Visayas and Mindanao markets.

It also noted the positive economic and industry outlook as well as the firm’s continuously growing revenues and net income complemented by tax incentives, along with strong margins and returns.
Also considered was CLI’s good coverage of interest and current debt, complemented by an adequate capital structure.

However, PhilRatings also took note of threats from a highly competitive market, with peers having access to significant capital and a substantial landbank.

CLI is a Cebu-based real estate company, with a portfolio of subdivision house and lots and townhouses, residential condominium units, as well as office projects and retail space.