Robinsons Land Corp., a leading real estate developer, raised P15 billion in fresh capital from the issuance of fixed-rate bonds amid strong support from retail and institutional investors.
RLC president and chief executive Frederick Go said during the listing ceremony Friday that total demand reached P120 billion, or 12 times the base offer of P10 billion. This prompted RLC to exercise the oversubscription option for another P5 billion.
Go said the company planned to use the proceeds to partially fund 2022 capital expenditures for project development and land acquisition, refinance maturing debt and support overall business operations.
“We are delighted with the overwhelming market reception and record oversubscription of our bond offering, which signify strong investor confidence in RLC’s brand of excellence and demonstrated resilience. Proceeds from the first tranche will support business expansion and investment aimed at generating sustainable value for shareholders,” Go said.
RLC’s P15-billion bond offering represents the first tranche of its P30-billion debt securities program approved by the Securities and Exchange Commission.
Philippine Rating Services Corp. assigned the highest issue credit rating of PRS Aaa, with a stable outlook on the bond offering, indicating the company’s stability and strong capacity to meet financial commitments.
The bonds carry a coupon of 5.3789 percent per annum and 5.9362 percent per annum for the three-year and five-year tenors, respectively.
Go said the RLC ramped up expansion into office, malls, hotels, residential and industrial sectors as it expected the business environment to improve.
He said malls and hotels were expected to recover to pre-pandemic levels before the end of the year.
RLC also remains aggressive with residential launches with four more projects in the second half after opening four projects in the first half, he said.