CLI To Fuel Expansion With ₱5-B Bond Listing
Leading Vismin developer Cebu Landmasters Inc. (“CLI”) successfully listed its first fixed-rate bond offering worth PHP5 billion at the Philippine Dealing and Exchange Corporation last October 7.
Photo Insert: (left to right) SB Capital Investment Corporation President Virgilio O. Chua, Bank of the Philippine Islands SVP Luis E. Cruz, BPI Capital Corporation Director Rainier A. Llige, Cebu Landmasters, Inc. (CLI) Independent Director Atty. M. Jasmine S. Oporto, CLI Director, SVP and Marketing Director Joanna Marie Soberano-Bergundthal, CLI Director, Chief Finance Officer Beauregard Grant L. Cheng, CLI Director, EVP and Treasurer Ma. Rosario B. Soberano, CLI Director, EVP and COO Jose Franco B. Soberano, SEC Commissioner Kelvin Lester K. Lee, Philippine Depository & Trust Corp. President and CEO Ma. Theresa B. Ravalo, Philippine Dealing & Exchange Corp. President and CEO Antonino A. Nakpil, China Bank Capital Corporation Head of Execution and Treasurer Juan Paolo E. Colet, PNB Capital and Investment Corporation President and CEO Gerry B. Valenciano, and RCBC Capital Corporation President and CEO Arsenio Kenneth M. Ona
This is from CLI’s approved shelf registration of a P15 billion debt securities program to be utilized within three years.
The CLI bond issuance is intended to further fuel the company’s growth momentum. Since it was listed in 2017, Cebu Landmasters’ net income has registered a CAGR of 27.78%. From PHP767 million and 28 projects in 2016, the firm posted in 2021 a net income of PHP2.6 billion and over 100 projects in 16 key VisMin cities.
These CLI bonds received from Philratings a credit rating of Aa plus with a stable outlook. The Philippine Rating Services Corp. commended the company for its sound management and strategies and its competitive advantage in VisMin markets evidenced by continued growth despite the pandemic according to PhilRatings.
The CLI bonds are issued in three tenors: Series A with a maturity of 3.5 years and a coupon rate of 6.4222%; Series B with a maturity of 5.5 years and a coupon rate of 6.9884%; and Series C with a maturity of seven years and a coupon rate of 7.3649%.
BPI Capital Corporation and China Bank Capital Corporation have been appointed as joint issue managers, joint lead underwriters, and joint bookrunners. PNB Capital and Investment Corporation, RCBC Capital Corporation and SB Capital Investment Corporation are co-lead underwriters.
The fresh capital has been earmarked for CLI’s core residential business segments in vertical and horizontal housing projects in VisMin.
CLI chairman and CEO Jose Soberano III remarked: “CLI’s growth has been closely tied with serving the strong underserved demand for middle-class housing in VisMin. We will continue to lean on that strength as we build out sustainable and vibrant townships in the region. We will further count on these communities of the future to propel the firm further. As new airports and other major infrastructure come onstream to unlock VisMin’s vast potentials, CLI’s developments and estates will serve as catalysts for sustained growth and development.”