Sta Lucia raises P5B from bond issue

MANILA, Philippines - Sta. Lucia Land Inc. successfully raised P5 billion from the issuance of fixed-rate peso bonds.

The three-year bonds due in 2018 carry an interest of 6.7284 percent per annum while the five year and three months bonds due in 2021 have an interest rate of 6.715 percent per annum.

The bond issuance was assigned an AA+ rating by local debt watcher Credit Rating and Investor Services Philippines Inc.

China Banking Corp. was the issue manager and lead underwriter for the issue.

Proceeds from the issuance would be used for general corporate purposes, capital expenditures and refinancing of existing secured loans.

Sta. Lucia is a majority-held company of the Sta. Lucia Realty Group that was incorporated in 1972. Together, the two companies have a combined 40-year track record that created a footprint in 10 major regions and cities in the country as they developed over 10,000 hectares of land and more than 220 residential subdivisions.

Through the years, Sta. Lucia added 14 golf courses in its portfolio with world-class championship courses.

According to CRISP, Sta. Lucia has operated mostly from internally generated funds and has only tapped banks for its direct borrowings for just over P3 billion as against P17.8 billion in assets and total equity of P11.7 billion.

SLI’s low debt provides the company a broader flexibility in financing its future expansion programs by tapping the capital market with fresh debt and further equity infusion, the debt watcher said.

Crisp also assigned a stable outlook on Sta. Lucia as it is expected to maintain its sales and revenue trajectory in a competitive but stable property market.