Robinsons Land Corporation (RLC), a leading real estate developer in the Philippines, returned to the local debt capital markets with the historic listing of its Php15-billion fixed-rate bonds at the Philippine Dealing and Exchange Corp. (PDEx) on August 26, 2022. The transaction drew total bids of Php120 billion, 12 times the base offer, prompting the Company to exercise its oversubscription of up to Php5 billion.
Strong demand from the fixed income community allowed RLC to price at the tightest of spreads. With quarterly interest payments, the bonds carry a coupon of 5.3789% per annum and 5.9362% per annum for the three-year and five-year tenor, respectively.
This bond issuance marks the first tranche of RLC’s Php30-billion, 3-year debt securities program filed under shelf-registration with the Securities and Exchange Commission (SEC). It received the highest issue credit rating of PRS Aaa, with a Stable Outlook from the Philippine Rating Services Corp. (PhilRatings), indicating the Company’s stability and strong capacity to meet its financial commitments.
“We are delighted with the overwhelming market reception and record oversubscription of our bond offering, which signify strong investor confidence in RLC’s brand of excellence and demonstrated resilience. Proceeds from the first tranche will support business expansion and investment aimed at generating sustainable value for shareholders,” RLC President and CEO Frederick Go said.
The sale of bonds forms part of the Company’s strategy to diversify funding sources. Proceeds will be used to partially fund its capital expenditure requirements for project development and land acquisition, to refinance maturing debt obligations, and support overall business operations. RLC engaged BDO Capital, BPI Capital Corporation, China Bank Capital, First Metro Investment Corporation and SB Capital as the joint issue managers, joint lead underwriters and joint bookrunners for the transaction. The Selling Agents are East West Banking Corporation, PNB Capital and Investment Corporation, RCBC Capital Corporation and Robinsons Bank Corporation