Rockwell Land Corp., the real estate arm of the Lopez Group, raised P10 billion from its issuance of fixed-rate bonds following strong investor demand.
In a disclosure to the stock exchange Wednesday, the company said the offering was five times oversubscribed at the base offer of P7 billion. This prompted the developer to exercise its overallotment option of up to P3 billion.
The issuance consisted of three-year bonds carrying an annual interest rate of 5.5666 percent and five-year bonds priced at 5.8595 percent. The bonds were listed on the Philippine Dealing & Exchange Corp. on Wednesday, marking the company’s first foray into the local bond market since 2013.
Rockwell Land said the offer attracted a diversified mix of retail and institutional investors, signaling confidence in its long-term prospects.
“We were pleasantly surprised by the reception,” Rockwell Land chairman Nestor Padilla said.
Proceeds from the bond sale will fund capital expenditures, including land development and construction costs for ongoing projects. These include horizontal residential developments and key ventures such as Rockwell Center Bacolod, Power Plant Mall Angeles, Rockwell at IPI Center in Cebu, and Aruga Mactan Hotel.
Rockwell Land primarily develops residential and commercial projects catering to the high-end and upper-mid markets. It has also expanded into horizontal development with projects in Pampanga, Laguna, Batangas, Cebu and Bacolod.
In December, the company acquired a 74.8 percent stake in Alabang Commercial Corp., the owner and operator of Alabang Town Center. The retail and office center in Muntinlupa sits on 17.5 hectares and houses roughly 500 tenants.
The bond sale received the highest credit rating of PRS Aaa with a stable outlook from the Philippine Ratings Services Corp. (PhilRatings), indicating minimal credit risk and a strong capacity to meet financial obligations.
BDO Capital & Investment Corp., First Metro Investment Corp., PNB Capital and Investment Corp. and RCBC Capital Corp. acted as joint lead underwriters and bookrunners for the offering.
