Cebu Landmasters Inc. (CLI) said Friday it plans to build 16,000 affordable residential units by February 2029 as part of its commitment under the P5-billion sustainability-linked bonds (SLB).
CLI chief operating officer Jose Franco Soberano said in an interview at the sidelines of the company’s bond listing they would spend at least P10 billion to complete the 16,000 affordable residential units.
Most units will be built in the Visayas and Mindanao, with prices ranging from P2.5 million to P3.5 million and monthly amortization of P8,000 to P10,000.
Soberano said the units would not only significantly expand the group’s affordable housing portfolio but would also help address the country’s 6.7 million housing backlog.
He expressed confidence about meeting the target, saying that on average, CLI delivers 6,000 units annually.
“Our mission at Cebu Landmasters has always been clear: to build communities where Filipino families can thrive,” said CLI chairman and chief executive Jose Soberano III.
“With this sustainability-linked bond, we are strengthening that commitment by holding ourselves accountable to a measurable target—building 16,000 more affordable homes by 2029. In just five years, we will more than double what we have achieved over the past two decades,” he said.
The bonds consist of three-year Series D bonds at a rate of 6.6348 percent annually and five-year Series E bonds at 6.9157 percent.
The offering was three-times oversubscribed, indicating strong investor confidence on the company.
CLI is the first real estate developer in the Philippines to use affordable housing as the key success metric for an SLB.
An SLB is a unique financial instrument tied to an environmental, social and governance (ESG) objective. In case CLI fails to meet its sustainability targets within a specified period, the interest rate increases by 0.75 basis point.