Cebu Landmasters Inc., a property developer in the Visayas and Mindanao, is planning to raise up to P8 billion from the initial tranche of its new three-year Shelf Registration program amounting to P15.0 billion.
Philippine Rating Services Corporation (PhilRatings) said it has assigned a very strong Issue Credit Rating of PRS Aa plus, with a Stable Outlook, for CLI’s proposed bond issuance of P5.0 billion, with an oversubscription option of up to P3.0 billion.
PhilRatings has also upgraded the Issue Credit Rating for CLI’s outstanding Series A to C Corporate Notes worth P5.0 billion to PRS Aa plus, with a Stable Outlook, from PRS Aa.
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.
A Stable Outlook is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.
The rating and outlook reflect CLI’s sound management and strategy, with a sustained competitive advantage in the Visayas and Mindanao (VisMin) markets as evidenced by its growth over the last few years.
It also considers CLI’simproved profitability, following the pandemic-induced minimal decline in 2020 on account of the Company’s resilient operations amidst the COVID-19 pandemic.
Also taken into account is the adequate coverage of interest even with a higher debt position and threats from a highly competitive market, with peers having access to significant capital and a substantial landbank, counterbalanced by the Company’s ability to form strategic JV partnerships.
CLI has 55 ongoing projects, with a combined total of 19,833 units, situated in strategic locations in VisMin. Furthermore, CLI has a strong pipeline of 21 projects for the next two years, including 19 residential, one office condo, and the beginning of lot sales in Davao Global Township.
PhilRatings said “The Company continues to face good prospects and projects to increase its recurring income base augur well for CLI in the medium- to long-term, particularly given economic conditions and developments, both domestically and globally.”