Robinsons Land raises P12B from bond sale

MANILA, Philippines - Property developer Robinsons Land Corp. (RLC) has raised P12 billion from a dual tranche bond sale, shoring up funds for capital expenditure and debt payment.

The company’s offering comprised P10.64 billion of seven-year bonds and P1.36 billion of 10-year notes.

The seven-year bonds yield 4.8 percent per annum while the 10-year bonds carry an interest rate of 4.93 percent.

According to IFR Asia, initial guidance on the bonds was set at 4.7 to 5.2 percent for the seven-year bonds and 4.82 percent to 5.32 percent for the 10-year debt papers.

RLC was initially looking to sell P10 billion but decided to issue another P2 billion worth of bonds amid strong demand.

Proceeds from the sale will be used to refinance P8.1 billion of debt maturing in the first quarter and support working capital requirements.

RLC has allotted a record P17 billion for capital spending for its fiscal year ending September this year mainly to build new shopping malls and expand existing ones.

New malls will rise in Las Piñas, San Jose (Antique) and Cebu.

On the other hand, the malls in Novaliches and Ilocos Norte will undergo expansion.

The property arm of the Gokongwei family’s JG Summit Holdings Inc. reported a 35.4 percent rise in net income for the quarter ending December last year to P1.4 billion.