CLI gets SEC nod to sell P5 billion bonds

MANILA, Philippines — Property developer Cebu Landmasters Inc. (CLI) has received regulatory approval to offer up to P5 billion in sustainability bonds to raise fresh capital for debt payments.

CLI yesterday said it has received from the Securities and Exchange Commission the certificate of permit to offer securities for sale for sustainability-linked bonds, made up of a base amount of P3 billion and oversubscription option of P2 billion.

The offer represents the third tranche of bonds covered by CLI’s shelf registration, amounting to as much as P15 billion under its debt securities program.

The coupons are set at 6.5408 percent for the Series F four-year bonds, 6.6807 percent for Series G seven-year bonds and 6.9572 percent for Series H 10-year bonds, all per annum. The offer will run from Nov. 24 to 28 and the bonds will be listed on the Philippine Dealing and Exchange Corp. on Dec. 5.

Philippine Rating Services Corp. has assigned the securities with a credit grade of PRS Aa with a stable outlook.

This means CLI’s bonds are high quality and have low exposure to credit risk, with the company capable of meeting all of its financial commitments.

CLI is one of the most dominant developers in Visayas and Mindanao, accounting for 18 percent of the residential market in these islands.

The developer is also completing a roster of new projects to meet future demand, aiming to expand its current portfolio of 131 projects in 18 cities in Visayas and Mindanao.

In October, CLI began the construction of a P9.2-billion tower, the maiden site of what would be Cebu’s first Japanese-inspired residence. The project is being undertaken with NTT Urban Development Asia.

CLI’s net income went up by six percent to P3.1 billion in the nine months to September, as revenue rose by two percent to P14.3 billion.

CLI’s total assets also ballooned by 18 percent to P128.7 billion on land acquisitions and project completions, all the while keeping its debt-to-equity ratio at a healthy level of 1.63 times.

CLI also widened its landbank to 188 hectares by adding a 79-hectare property in Liloan, Cebu, which would become a mixed-use township with residential and commercial units.