CLI to debut on bond market
Soberano family-led Cebu Landmasters Inc. (CLI) plans to raise P8 billion from a maiden retail bond issuance to fund its expansion plans, including the development of townships in the Visayas and Mindanao.
The listed property developer, in a disclosure on Tuesday, said its board of directors had approved the offering, which consisted of a principal amount of up to P5 billion and P3-billion oversubscription option.
The bonds will be issued out of its P15-billion debt securities program.
“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,” CLI chief finance officer Grant Cheng said.
The bonds, targeted to be offered in the third quarter, will have tenors ranging from 3.5 to seven years.
Proceeds will be invested in existing markets and further purchases of land for development. Some of the cash inflow will also be directed to its townships in Davao and Cagayan de Oro and a reclamation project in Cebu.
“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,” Cheng said.
BPI Capital Corp. and China Bank Capital Corp. are the joint issue managers, lead underwriters and lead bookrunners for this deal. Philippine Depository and Trust Corp., meanwhile, is the registrar and paying agent.
In the first quarter, CLI grew its net income attributable to parent company by about 14 percent to P810.64 million from the previous year, buoyed by better revenues from real estate sales as well as rental and hotel operations. It launched four projects amounting to P5.4 billion in the same period.
Cheng previously said that CLI could attain 20-percent growth in earnings this year as it expands its business.