RLC eyes P12B from bonds

MANILA, Philippines - Property developer Robinsons Land Corp. (RLC) plans to raise as much as P12 billion from the issuance of fixed-rate bonds to pay some of its debt and fund capital expenditures.

In a disclosure to the stock exchange, RLC said it intends to issue fixed-rate bonds in the aggregate amount of P10 billion with an oversubscription option for an additional P2 billion.

“The proposed RLC bond issuance of up to P12 billion is to fund expansion and debt repayment,” RLC president Frederick Go said in a text message.

The firm, however, did not elaborate on the details of the bond issuance.

RLC said the issuance is still subject to the requirements of the Securities and Exchange Commission and the rating process of the Philippine Rating Services Corp.

The property development arm of tycoon John Gokongwei is earmarking P15 to P17 billion for its fiscal year 2015, its largest capex to date.

The firm said it is jacking up its capital spending to expand its mall, hotel and office portfolio.

RLC recorded higher earnings in the first nine months of this year as its commercial, office, residential and hotel divisions posted higher revenues. Its net income went up 6.4 percent to P3.88 billion as of end-September.