STI raises P3B to expand school network this year

MANILA, Philippines - Tanco-led STI Education Systems Holdings Inc. has raised P3 billion to expnd its schools network this year.

Its unit STI Education Services Group Inc. (STI-ESG) said it entered into a corporate notes facility agreement with China Banking Corp.

“Pursuant to the agreement, the issue manager and noteholder granted a notes facility to the issuer in the aggregate principal amount of up to P3 billion,” STI Holdings said.

“The net proceeds from the issuance of the notes shall be used by the issuer for capital expenditures and other general corporate purposes,” it added.

In the March to December 2013 period, the company’s gross revenues hit P1.36 billion in on the increase in students in schools operated by STI-ESG.

“The 13-percent increase in gross revenues resulted mainly from increase in the number of students of STI-ESG and its subsidiaries from 68,363 last year to 71,195 this year,” STI Holdings said.

STI Holdings said more students also enrolled in four-year courses approved by the Commission on Higher Education than two-year programs approved by the Technical Education and Skills Development Authority.

STI-ESG subsidiary iAcademy, an upscale technology school that serves as a training ground for globally competitive professionals, also contributed P91 million in revenues.

Recently-acquired West Negros University in Bacolod City contributed P34.6 million to revenues of in the October to December period.

Moving forward, STI Holdings said it is on track to completing its expansion program. STI ORCA in Cainta, its biggest campus to date, is fully operational while construction is ongoing for schools in Cubao and Calamba.

Last month, the company inaugurated its P500-million academic center in Caloocan City. Three more academic centers will start operations this year: STI Academic Centers in Calamba, Cubao and Lucena.

STI Holdings allotted P390 million for its schools acquisition program last year while committing to continuously expand its own portfolio with the groundbreaking of two new schools. The expansion program is expected to boost enrollment to as much as 100,000 students in 2015.