Robinsons Land Corporation (RLC), a leading real estate developer in the country, upsized its fixed-rate bond offering from P10 billion to P15 billion which it listed at the Philippine Dealing and Exchange Corp. (PDEx).
Highlighting RLC’s return to the local debt capital market, the transaction was 12 times oversubscribed as it drew total bids of P120 billion, prompting the Company to exercise its oversubscription of up to P5 billion.
Strong demand from the fixed income community allowed RLC to price at the tightest of spreads. With quarterly interest payments, the bonds carry a coupon of 5.3789 percent per annum and 5.9362 percent per annum for the three-year and five-year tenor, respectively.
This bond issuance marks the first tranche of RLC’s P30 billion, 3-year debt securities program filed under shelf-registration with the Securities and Exchange Commission (SEC).
It received the highest issue credit rating of PRS Aaa, with a Stable Outlook from the Philippine Rating Services Corp. (PhilRatings), indicating the Company’s stability and strong capacity to meet its financial commitments.
“We are delighted with the overwhelming market reception and record oversubscription of our bond offering, which signify strong investor confidence in RLC’s brand of excellence and demonstrated resilience,” RLC President and CEO Frederick Go said.
He added that, “Proceeds from the first tranche will support business expansion and investment aimed at generating sustainable value for shareholders.” Specifically, Go said about 35 percent of the proceeds will be used to prepay existing debt and refinance maturing debt obligations.
The balance of 65 percent will be used for the expansion of RLC’s malls, hotels, offices, and industrial facilities; for land acquisition; as well as support overall business operations.
The sale of bonds forms part of the RLC’s strategy to diversify funding sources.
RLC engaged BDO Capital, BPI Capital Corporation, China Bank Capital, First Metro Investment Corporation and SB Capital as the joint issue managers, joint lead underwriters and joint bookrunners for the transaction.
The Selling Agents are East West Banking Corporation, PNB Capital and Investment Corporation, RCBC Capital Corporation and Robinsons Bank Corporation.