VisMin developer Cebu Landmasters Inc. (CLI) has raised ₱5 billion from the issuance of sustainability-linked bonds (SLB) that will be used to build 16,000 affordable homes.
In an interview after the listing of the bond at the Philippine Dealing & Exchange Corp. (PDEx), CLI Executive Director and COO Jose Franco B. Soberano said the bonds’ rates hinge on a construction schedule that will penalize the firm with higher rates if targets are not met.
He said this reinforces CLI’s commitment to addressing the country’s 6.7 million housing backlog and significantly expanding its affordable housing portfolio.
This issuance marks the second tranche of CLI’s ₱15-billion shelf-registration program, leaving ₱5 billion available for future issuances.
The newly listed Series D and E bonds, due in 2028 and 2030 respectively, received strong market reception. Series D bonds, totaling ₱2.86 billion, carry an interest rate of 6.6348 percent, while Series E bonds, worth ₱2.14 billion, have an interest rate of 6.9157 percent.
“Our mission at Cebu Landmasters has always been clear: to build communities where Filipino families can thrive,” said CLI Chairman and CEO Jose Soberano III.
He added that, “With this sustainability-linked bond, we are strengthening that commitment by holding ourselves accountable to a measurable target—building 16,000 more affordable homes by 2028.
“In just five years, we will more than double what we have achieved over the past two decades.”
An SLB is a unique financial instrument tied to an environmental, social, and governance (ESG) objective. If the issuer fails to meet its sustainability targets within a specified period, the interest rate increases.
CLI is the first real estate developer in the Philippines to use affordable housing as the key success metric for an SLB. The company has already built over 14,000 affordable housing units, a number that will exceed 30,000 by the bond’s maturity.
“The overwhelming investor interest in this offering, which was oversubscribed three times at the narrow end, is a testament to the trust financial institutions place in CLI,” added Soberano.
He noted that, “This confidence reinforces our role as a key player in bridging the housing gap while delivering sustained value to stakeholders.”