Robinsons Land Corporation (RLC), the property development arm of the Gokongwei Group, has listed P15 billion worth of fixed rate bonds with the Philippine Dealing & Exchange Corporation.
In a disclosure to the Philippine Stock Exchange, the firm said this constitutes the second and final tranche of its shelf-registered debt securities program in the aggregate principal amount of up to P30 billion, which was rendered effective on August 12, 2022.
RLC offered a principal amount of P10 billion worth of bonds and noted that, “The transaction received overwhelming support, prompting the Company to fully exercise its oversubscription allotment of P5 billion.”
“This marks the first fully filled oversubscription by a Philippine company this year,” RLC said adding that robust investor demand enabled it to price at the tightest of spreads, locking in rates of 6.0972 percent per annum for the three-year tenor, and 6.1663 percent per annum for the five-year tenor.
The issuance received the highest credit rating of PRS Aaa, with a Stable Outlook, from the Philippine Rating Services Corporation (PhilRatings), indicating the Company’s stability, healthy balance sheet and strong capacity to meet its financial commitments.
“We are grateful to the investor community for their continued trust and confidence in RLC’s brand, reputation, and overall growth prospects. Proceeds from the offer will be used to further strengthen the Company’s strategic investments aimed at increasing shareholder value,” RLC President and CEO Frederick D. Go said.
RLC said active participation in the debt capital markets is an integral component of its strategy of diversifying its funding sources.
Proceeds from the bonds issuance will be used to fully repay maturing debt obligations, partially fund the capital expenditure for project development, and support overall business operations.
RLC engaged BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation and SB Capital Investment Corporation as the Joint Issue Managers, Joint Lead Underwriters and Joint Bookrunners for the transaction. Land Bank of the Philippines acted as the Selling Agent.