PROPERTY-DEVELOPER Cebu Landmasters Inc. (CLI) is raising P8 billion from selling debt notes to finance its expansion plans.
The Cebu property giant told the stock exchange Monday, March 9, 2020, it has signed a notes facility agreement for the debt securities offering.
The firm is selling the corporate notes with tenors of five, seven and 10 years.
The issue was oversubscribed and the full over-allotment option was exercised by the company.
The five-year, seven-year and 10-year corporate notes amounted to P1.3 billion, P5.7 billion and P1 billion, respectively.
The institutions who participated are Bank of the Philippine Islands, China Bank, Development Bank of the Philippines (DBP), Rizal Commercial Banking Corp. (RCBC) and Social Security System.
The issuance was jointly arranged by BPI Capital Corp. and China Bank Capital Corp., with DBP, Landbank and RCBC as co-arrangers.
Cebu Landmasters appointed BPI Asset Management and Trust Corp. as the facility agent and paying agent.
The proceeds of the notes will be used for strategic land acquisitions in Cebu, Bohol, Bacolod, Cagayan de Oro and Davao.
The proceeds will also fund projects in new expansion areas such as Puerto Princesa, Leyte, Butuan and General Santos City.
“Part of the proceeds will also fund the development of the 22-hectare central business hub in Matina, Davao,” CLI said.
CLI president Jose Soberano III said Visayas and Mindanao’s “economic dynamism, resilience and social growth” have given rise to exceptional real estate opportunities in its strategic urban areas. “Our expertise and relationships in the region have allowed us to maximize those opportunities and have served as drivers of the firm’s consistent growth,” he said.
The Cebu-based firm listed in 2017 now has 58 developments in eight key cities. It is working on 27 projects that will be rolled out soon. (CSL)