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Cebu Landmasters raises P5 billion from bond offering

October 9, 2022

MANILA, Philippines — Cebu Landmasters Inc. (CLI), the listed property developer in the Visayas and Mindanao regions, successfully raised P5 billion from its recent bond offer, expanding its war chest to fuel growth.

CLI chairman and CEO Jose Soberano III said the proceeds would be earmarked for core residential business segments in vertical and horizontal housing projects in VisMin.

“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,” Soberano said.

“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,” he added.

Since it was listed in 2017, CLI’s net income has registered a compounded annual growth rate of 27.78 percent. Thus, from a net income of P767 million and 28 projects in 2016, the firm posted a 2021 net income of P2.6 billion and recorded over 100 projects in 16 key VisMin cities.

The bonds were listed at the Philippine Dealing and Exchange Corp. yesterday.

The P5 billion comes from CLI’s approved shelf registration of a P15 billion debt securities program to be utilized within three years.

Local debt watcher Philippine Rating Services Corp. gave CLI a credit rating of Aa plus with a stable outlook.

PhilRatings took into account CLI’s “sound management and strategies and its competitive advantage in VisMin markets evidenced by continued growth despite the pandemic.”

The CLI bonds are issued in three tenors: Series A with a maturity of 3.5 years and a coupon rate of 6.4222 percent; Series B with a maturity of 5.5 years and a coupon rate of 6.9884 percent; and Series C with a maturity of seven years and a coupon rate of 7.3649 percent.

The company tapped BPI Capital Corp. and China Bank Capital Corp. as joint issue managers, joint lead underwriters and joint bookrunners.  PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. are co-lead underwriters. – By Iris Gonzales

Published in PhilStar