STI Education Services Group Inc. said it plans to spend P6.13 billion over the next 18 months to construct new schools and acquire properties for future expansion.
STI-ESG said in a filing with the Securities and Exchange Commission the capital spending from the fourth quarter of 2016 to the first quarter of 2018 would finance the construction a new school in San Jose del Monte, Bulacan and new campuses for existing schools in Davao, Cagayan de Oro, San Pablo, Iloilo and Baguio.
STI-ESG said the new school in San Jose Del Monte would occupy a 4,178-square-meter lot in a densely populated area bordering Metro Manila. The lot was acquired in 2014.
The company is also looking at building new campuses in Davao, Edsa, Lipa, Cebu, Legaspi, Tanauan and Cabatanuan.
Expansion projects are also in the works in Sta. Maria (Bulacan), Cagayan de Oro, San Pablo, Iloilo, Baguio and Caloocan.
Funding for these projects will come from STI-ESG’s planned P5-billion fixed-rate bond offering.
STI-ESG said it planned to initially issue P3 billion worth of seven and 10-year bonds in March.
The remaining P2 billion will be placed under shelf registration.
ChinaBank Capital Corp. and First Metro Investments Corp. are the joint issue managers and underwriters for the offering.
STI ESG constructed 11 new school facilities over the past seven years, resulting in the additional enrollment of 17,500 new students.
“STI-ESG intends to continue this strategy and build new facilities for more schools,” the company said.
STI-ESG now has a network of 76 schools nationwide, comprising of 64 STI-branded colleges and 12-STI-branded education centers. It offers secondary and tertiary programs and post-graduate and associate programs.