Integrated property developer Robinsons Land Corp.successfully raised P15 billion from issuance of fixed rate bonds on strong demand from investors.
RLC president and chief executive officer Frederick Go said during the virtual bond listing on the Philippine Dealing & Exchange Corp. the debt issue drew total orders of P25 billion, or 2.5 times the base offer, making company as the first Philippine corporate this year to exceed the oversubscription amount.
Go said this strong market reception prompted the company to fully exercise the P5 billion oversubscription option.
Robust investor demand also allowed RLC to price at the tightest of spreads, locking in rates of 6.0972 percent per annum for the three-year tenor, and 6.1663 percent per annum for the five-year tenor.
“We are grateful to the investor community for their continued trust and confidence in RLC’s brand, reputation, and overall growth prospects,” Go said.
Go said proceeds from the bond issuance will be used to fully repay maturing debt obligations, partially fund the capital expenditure for project development, and support overall business operations.
RLC said its active participation in the debt capital markets is an integral component of the group’s strategy to diversify its funding sources.
The bond issuance received the highest credit rating of PRS Aaa, with a stable outlook, from the Philippine Rating Services Corp.
The PRS Aaa rating indicates the company’s stability, healthy balance sheet and strong capacity to meet its financial commitments.
The P15 billion billion fixed rate bonds constitutes the second and final tranche of the company’s P30 billion shelf-registered debt securities program approved by the Securities and Exchange Commission in 2022.
BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. and SB Capital Investment Corp. are the joint issue managers, joint lead underwriters and joint bookrunners for this transaction.