STI to issue P1-B educational, bond-like instrument

The Systems Technology Institute Inc. (STI) is issuing P1 billion worth of educational, bond-like financial instrument, with Delphi Group under former banker Octavio Espiritu as financial adviser.

The bond issue is equivalent to 2.4 million academic units under STI’s Gift of Knowledge education certificates, which will be covered by policies that will be issued by pre-need company, CAP Philippines Inc. The Sobrepeña-led pre-need company has tapped Bank of Commerce (BOC) as its trustee bank.

Based on the prospectus submitted to the Securities and Exchange Commission (SEC), BOC will service the cash redemption of the STI certificates or settle any costs in connection with the utilization of the certificates.

STI president and chief executive officer Eusebio Tanco said the redemption period will run up to 2008. The scheme is expected to result in a total of 14,000 additional enrollees for STI by the end of the six-year period.

"All the enrollees will come from CAP education plan holders which have varying maturity dates in the plans, and they have the option of taking any course STI or its affiliates can offer," Tanco said yesterday in a press briefing.

He said the proceeds will fund the school’s expansion programs domestically and overseas. Recently, it established a placement or coordinating agency in the United States that will farm out STI graduates to jobs in different states.

STI says it has access to at least 100 hospitals which are always in need of medical professionals.

STI officials said the strategic alliance formed among STI, CAP Phils. and the Bank of Commerce is a win-win situation.

It will ensure that STI will have at least 2,000 new enrollees annually with their tuitions paid through the education certificates. "That is over the thousands of walk-in applicants," they said, adding that the school has roughly 80,000 students at any given time.

The education-based network of STI consists of over 100 schools and learning centers, with long-term partnerships with international certified providers and higher learning institutions.

Last April, AMA Education Corp. and AMA Computer University Inc. also undertook a P1.5-billion bond offer for its expansion program. It is the first IT-related bond issuance in the country this year.

Financial adviser First Metro Investment Corp. AMA Education also specializes in information and communications technology (ICT) and information technology (IT)-enhanced graduate and post-graduate courses in the Philippines.