Rockwell Land completes P10-B bond issuance
Rockwell Land Corp. has successfully raised P10 billion from its latest fixed-rate bond issuance. This is the firm’s return to the Philippine debt capital markets for the first time since 2013.
In a disclosure on Wednesday, the Lopez-led property developer said the bonds were listed on the Philippine Dealing and Exchange Corp. (PDEx) on the same day. It signaled strong investor appetite despite a volatile global backdrop.
The issuance was split into two tranches: three-year bonds carrying an interest rate of 5.5666 percent a year and five-year bonds priced at 5.8595 percent annually.
The offer drew robust demand, with the orderbook oversubscribed by around five times the base offer of P7 billion.
Rockwell said the strong take-up reflected broad investor confidence in its long-term prospects. The investor base consisted of a mix of retail and institutional participants, providing a diversified funding pool for the company.
“Our sincere appreciation to all our underwriters and partners who worked closely with us to bring this P10-billion bond issuance together. We were pleasantly surprised by the reception,” Rockwell Land chair Nestor Padilla said.
Proceeds from the issuance will be used to fund capital expenditure requirements, such as land development and construction costs across key projects.
These include horizontal residential developments, Power Plant Mall expansion in Angeles, Rockwell at IPI Center in Cebu, Aruga Mactan Hotel and Rockwell Center Bacolod.
The bonds were assigned a PRS Aaa rating with a stable outlook by the Philippine Ratings Services Corp., indicating the highest quality obligations with minimal credit risk.
BDO Capital & Investment Corp. and First Metro Investment Corp. acted as joint issue managers, while PNB Capital and Investment Corp. and RCBC Capital Corp. served as joint lead underwriters and bookrunners.
Rockwell Land said the fundraising would strengthen its financial position as it continues to expand its portfolio of upscale residential and mixed-use developments nationwide.
