Ovialand, Security Bank seal P600-M loan deal
Mass housing developer Ovialand Inc. sealed a P600 million loan deal from Security Bank Corp. to bankroll new projects and to acquire raw land.
The developer said in the statement the debt transaction was signed with the lender’s investment banking unit, SB Capital Investment Corp. The deal was then fully taken up by Security Bank.
“We are pleased to partner with SB Capital and Security Bank as we attempt to achieve new milestones in our history,” Pammy Olivares-Vital, president and CEO of Ovialand, said in a statement.
“Ovialand is enjoying a stellar performance in 2022 despite current economic headwinds, and this financing package from Security Bank will enable the company to be more aggressive in realizing its growth potential,” the company executive added.
Ovialand turned to the debt market after delaying a P1.5-billion initial public offering, originally planned for June this year, due to poor market conditions.
“We are greatly appreciative of the trust provided to us by Ovialand in arranging this facility that will be crucial to their growth. We believe that this transaction will ripple into bigger and better capital raising exercises and we are excited to partner with Ovialand in such efforts,” SB Capital president Virgilio O. Chua said in the same statement.
Ovialand said the loan proceeds will be used for the development of “new horizontal residential projects in existing and new markets in the Philippines and increasing the size of its land bank.”
The builder sells affordable homes in Batangas, Laguna, and Quezon. It recently launched the sale of its homes in Santevi, its third project in Laguna. With the launch of Santevi, the company has expanded its portfolio in the province to morethan 2,100 units.
Ovialand generated P672 million in sales from January to June and it projects full-year revenues to hit P1.2 billion.
“As we head towards the end of 2022, we reflect on the success we have achieved while looking forward to what we can do in the years to come,” Olivares-Vital said.
“As we aim for new milestones, we will always look back at our commitment towards making quality homes at an accessible price point. This is our North Star as embodied in our mission of Premier Family Living,” she added.
