Robinsons Land to issue up to P12-B bonds

MANILA, Philippines - The Gokongwei family’s listed property developer Robinsons Land Corp. (RLC) is all set to tap the bond market for fresh funds that would refinance existing debt and partly fund its record capital expenditures this year.

In an en banc decision, the Securities and Exchange Commission (SEC), the corporate regulator approved RLC’s P12-billion fixed-rate peso bond issue.

RLC will be issuing the bonds in the aggregate amount of P10 billion with an oversubscription option of up to P2 billion.

“The bonds shall be issued in scripless form in minimum denominations of P50,000 each, as a minimum, and in multiples of P10,000 thereafter,” RLC said.

The bonds to be issued within the quarter will be composed of seven-year Series A bonds and 10-year Series B bonds.

“The net proceeds of the bonds will be utilized to refinance P8.10 billion of short term debt maturing in the first quarter of 2015 while the remainder will be used to partially finance the company’s capital expenditure requirements for 2015 and which will be disbursed within the first two quarters of 2015,” the company said.

The property development arm of tycoon John Gokongwei is earmarking P17 billion for its fiscal year 2015, its largest capex to date.

RLC said it would issue the bonds for institutional and retail investors through a general public offering to be conducted by the joint lead managers composed of BDO Capital & Investment Corp., The Hongkong and Shanghai Banking Corp. Ltd., SB Capital Investment Corp. and Standard Chartered Bank.

RLC is among the biggest names in property development in the country with investments in commercial centers, residential projects, office buildings and hotels.

The company recorded higher earnings in the first nine months of last year, with all its business divisions posting higher revenues.

RLC’s net income income attributable to equity holders recorded a 6.4 percent improvement to P3.88 billion as of end September 2014.