CHI launches P5B bonds

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Sunday, June 8, 2014


MAKATI—Ayala Land affiliate Cebu Holdings, Inc. (CHI) launched its presence in the local debt market, listing its P5-billion Fixed Rate Bonds due 2021 in the Philippine Dealing & Exchange Corp. (PDEx) platform.

CHI director and Ayala Land head for Visayas and Mindanao, Engr. Emilio J. Tumbocon, led the ringing of the bell to signal the start of trading of the CHI Bonds due 2021 in PDEx.

“Indeed, the success of this bond issue – in which we managed to raise not only the initial P3 billion, but the entire subscription amount of P5 billion – is a confirmation of the confidence of the investing community and the public in general in the company and its vision,” Tumbocon stated in his message.

This is CHI’s first time to tap the public bond market.

The Philippine Rating Services Corp. (PhilRatings) had earlier assigned the newly issued CHI bonds with a PRS Aaa. Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitments on the obligation is extremely strong.

This proposed bond issuance will fund CHI’s projects in the pipeline, including ongoing projects within Cebu Business Park and Cebu I.T. Park, a major redevelopment project at Cebu IT Park, as well continuing landbanking initiatives.

CHI’s P5-billion bonds due 2021 join the current roster of corporate issues listed in PDEx, bringing the year-to-date total of new listings to P114.8 billion—37.5 percent greater than the total new bond listings for the whole of 2013.

Throughout the years, CHI’s historical performance generally showed a positive trend.

The company’s revenues from 2009 to 2013 grew at annual rates ranging from 13 percent to as high as 33 percent throughout the period.

Revenues reached their peak in 2013 when the company recorded P2.2 billion in total revenues.The company’s bottom line likewise improved and recorded an increase of 13.6 percent to P501.0 million in 2013.

The company’s performance in 2013 demonstrates the company’s resilience amidst external stresses, like the quake and Yolanda in that year’s final quarter. (PR)

Published in the Sun.Star Cebu newspaper on June 09, 2014.

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