Affordable housing developer Haus Talk Inc. (HTI) has raised ₱1.8 billion from its fixed-rate bond issuance, upsized from its base offer of ₱1 billion, although its oversubscription option of another ₱1 billion was not fully taken up.

Following this, the firm listed the bonds at Philippine Dealing & Exchange Corp. (PDEx). The bonds have three- and five-year tenors priced at 7.0896 percent and 7.5924 percent, respectively.

Haus Talk said the issuance was upsized from the base offering of ₱1 billion following strong investor demand. To commemorate the listing, PDEx hosted a bell-ringing ceremony attended by representatives from Haus Talk, PDEx, and the transaction’s partner institutions.

PDEx President Stephanie Marie Zulueta welcomed HTI’s participation in the Philippine bond market, noting that the issuance marks another step in HTI’s continued engagement with the capital markets following its 2022 listing on the Philippine Stock Exchange’s (PSE) SME Board.

Haus Talk Chairman Terence Madlambayan said the strong response to the bond offering reflects investor confidence in the company’s vision and disciplined approach to growth.

Proceeds from the issuance will support Haus Talk’s expansion across Luzon, funding land banking initiatives, project development, and other general corporate requirements as the company continues to expand its portfolio of residential communities.

Haus Talk engaged Security Bank Capital Investment Corp. to serve as the issue manager, underwriter, and bookrunner for the offer.

Philippine Rating Services Corp. (PhilRatings) assigned an investment-grade issue credit rating of PRS A, with a stable outlook, to Haus Talk’s maiden bond issue.

Obligations rated PRS A have favorable investment attributes and are considered as upper-medium grade obligations. Although obligations rated PRS A are somewhat more susceptible to the adverse effects of changes in economic conditions, the obligor’s capacity to meet its financial commitments on the obligation is still strong.

A stable outlook, on the other hand, indicates that the rating is likely to be maintained in the next 12 months.

The assigned rating and the corresponding outlook take into account Haus Talk’s strong growth opportunity, given its focus on underserved housing market segments in key growth areas within and around Metro Manila.

It also considered the firm’s ability to sell-out its properties, although its size, scale, and geographic presence are currently limited compared to much larger competitors.

PhilRatings noted though that Haus Talk’s target market may be more vulnerable to economic downturns, albeit the company recorded a strong collection performance and revenue growth during the Covid-19 pandemic.

Other factors taken into account include the firm’s sustained earnings growth and its ample liquidity with a relatively conservative capital structure, albeit with rising debt levels to support growth in recent years.