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STI unit to issue P5b worth of bonds

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STI Education Systems Holdings Inc. said Thursday it plans to raise P5 billion from the issuance of fixed-rate bonds to finance campus expansions.

STI, the holding company of businessman Eusebio Tanco, said in a disclosure to the stock exchange unit STI Education Services Group Inc. filed a registration statement with the Securities and Exchange Commission on Jan. 10 for the shelf registration of P5-billion bonds to be offered in one or several tranches. 

The first tranche worth P3 billion will have tenors of seven and 10 years.

“The net proceeds of the bonds shall be used to finance STI ESG’s campus expansion projects and for other general corporate requirements,” STI said.

STI-ESG owns and operates one of the biggest networks of private schools in the Philippines. It currently operates 77 schools, including 66 STI branded colleges and 11 STI branded education centers. 

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It opened a new seven-story campus in Zapote, Alabang worth P500 million in September 2016.  It also plans to construct campuses in San Jose del Monte City in Bulacan and Davao City.

Students enrolled in schools under STI Holdings reached 103,727     in the school year 2016-2017, representing a 22 percent increase, or 18,997, from 84,730 enrollees in the previous school year.

Driving the growth in enrollment is the network’s K to 12 program, where a total of 39,206 senior high school students enrolled in educational institutions operated by STI-ESG, Information and Communications Technology Academy and STI West Negros University.

STI reported a net income of P542.9 million in the first six months of its fiscal year ending September 2016, up by 60 percent from P338.7 million it posted in the same period last year.

The company also generated P1.29 billion in revenues, or 15 percent higher than a year ago.

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