CEBU Landmasters Inc. (CLI) on Tuesday said its board of directors has approved its maiden offer and issuance of P5 billion peso-denominated fixed rate bonds, with a P3 billion oversubscription option, to support its expansion plans.
The issuance is part of an initial offer from a shelf registration of a P15 billion debt securities program to be utilized within three years.
The firm is tapping the Philippine Depository and Trust Corp. as registrar and paying agent; and both BPI Capital Corp. and China Bank Capital Corp., as the joint issue managers, joint lead underwriters and joint lead bookrunners.
“This maiden public bond offer of Cebu Landmasters is part of our strategy to sustainably maintain our growth and expansion plans as we serve the housing needs of the Filipino family. Especially in Vismin where the need for quality housing is constantly underserved, CLI is committed to delivering this essential need and contributing to the development of the communities we are helping to build,” said CLI chief finance officer Grant Cheng said in a statement to the stock exchange.
“We’re excited to bring our story to the public debt markets and we believe we have something unique to offer debt investors,” Cheng added.
The bonds have indicative maturities ranging from 3.5 to 7 years, with the periods to be determined during the final offer in the third quarter of this year.
CLI will use the bonds to support its growth plans, primarily by investing into markets where CLI’s initial foray has exceeded expectations and continuing its strategic land banking activities.
The fresh capital will also be deployed to large-scale estate projects such as the 22-hectare Davao Global Township, the 14-hectare Manresa Town in Cagayan de Oro City, and the 100-hectare Minglanilla Techno-Business Park (MingMori), CLI’s first reclamation project in Minglanilla, Cebu.