VisMin developer Cebu Landmasters Inc. (CLI) is allotting ₱15 billion for capital expenditures (capex) this year to fund the construction of ongoing and upcoming projects, land banking, and its entry into the Luzon market.
In an interview, CLI Chief Finance Officer Grant Cheng said, “We’re building up all the projects we’ve launched in the recent past, potential land acquisitions, as well as projects that we are newly launching like the one in Cagayan de Oro.”
CLI is also investing ₱12 billion in its two Manila projects, which will jumpstart its entry into Luzon. Cheng pointed out that the amount will be spent on construction over a four-year period.
In January this year, CLI announced its plan to jumpstart development in two projects—two condominium towers and a horizontal project—one in Manila and one in areas around Batangas and Cavite.
In Cagayan de Oro City, CLI is working on the 14-hectare Manresa Town, an integrated residential, commercial, and lifestyle space north of Mindanao. It is starting development with the first residential condominium, One Manresa Place, which will feature three towers with 940 units.
CLI is also committed to building 16,000 affordable homes in five years after raising ₱5 billion from the issuance of sustainability-linked bonds (SLB).
According to CLI Executive Director and COO Jose Franco B. Soberano, the bonds’ rates hinge on a construction schedule that will penalize the firm with higher rates if targets are unmet.
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, “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, which 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.”