Robinsons Land Corporation (RLC), a leading real estate developer in the Philippines, marked the listing of its ₱15-billion fixed rate bonds with the Philippine Dealing & Exchange Corp. on June 30, 2023. This constitutes the second and final tranche of the Company’s shelf-registered debt securities program in the aggregate principal amount of up to ₱30 billion, which was rendered effective on August 12, 2022.
The transaction received overwhelming support, prompting the Company to fully exercise its oversubscription allotment of ₱5 billion. This marks the first fully filled oversubscription by a Philippine company this year.
Robust investor demand enabled RLC to price at the tightest of spreads, locking in rates of 6.0972% per annum for the three-year tenor, and 6.1663% per annum for the five-year tenor. The issuance also received the highest credit rating of PRS Aaa, with a Stable Outlook, from the Philippine Rating Services Corporation (PhilRatings), indicating the Company’s stability, healthy balance sheet and strong capacity to meet its financial commitments.
“We are grateful to the investor community for their continued trust and confidence in RLC’s brand, reputation, and overall growth prospects. Proceeds from the offer will be used to further strengthen the Company’s strategic investments aimed at increasing shareholder value,” RLC President and CEO Frederick D. Go said.
Active participation in the debt capital markets is an integral component of RLC’s strategy of diversifying its funding sources. Proceeds from the bonds issuance will be used to fully repay maturing debt obligations, partially fund the capital expenditure for project development, and support overall business operations.
RLC engaged BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, First Metro Investment Corporation and SB Capital Investment Corporation as the Joint Issue Managers, Joint Lead Underwriters and Joint Bookrunners for the transaction. Land Bank of the Philippines, meanwhile, acted as the Selling Agent.