SEC clears up to P5-B CLI ‘sustainability’ bond offer

Securities and Exchange Commission (SEC) Headquarters in Makati —Daniella Agacer / INQUIRER.net

Property developer Cebu Landmasters Inc. (CLI) has obtained the Securities and Exchange Commission’s clearance for its P5-billion sustainability-linked bonds, which could support its plan to build its portfolio outside the Visayas and Mindanao.

In a disclosure to the local bourse on Monday, the company said it had secured from the corporate regulator the certificate of permit to offer securities, with a base amount of up to P3 billion.

If the fundraising activity gains strong traction, the firm can exercise an oversubscription option of up to P2 billion.

This represents the third tranche of securities under CLI’s P15-billion shelf registration program.

The notes consist of four-year Series F bonds priced to yield 6.5408 percent per year, seven-year Series G bonds at 6.6807 percent and 10-year Series H bonds at 6.9572 percent.

The offer period will run from Nov. 24 to Nov. 28, with the listing on the Philippine Dealing & Exchange Corp. set on Dec. 5.

While the group is focused on the Visayas and Mindanao (VisMin) markets, it is already preparing for its Luzon debut next year with about P12 billion in investment.

The Philippine Rating Services Corp. has assigned an issue credit rating of PRS Aa plus with a stable outlook to CLI’s latest offer. This means that the group’s capacity to meet its financial commitments is considered “very strong.”

According to CLI, the credit score shows its “sound management and strategy with a sustained competitive advantage in the VisMin markets and sustained earnings growth.”

CLI chair and CEO Jose Soberano III earlier said CLI was exploring the possibility of launching projects in Cavite or Batangas.

For the first three quarters, the company saw its consolidated profit edge higher by 6 percent to P3.1 billion, as it continued to dominate the residential property market in VisMin. Its revenues also inched up by 2 percent to P14.3 billion in the January to September period.

During the period, its residential reservation sales jumped 27 percent to P19.3 billion.