MANILA, Philippines — Robinsons Land Corp. (RLC) returned yesterday to the local debt capital market with the listing of its P15 billion fixed-rate bonds at the Philippine Dealing and Exchange Corp. (PDEx)
“The transaction drew total bids of P120 billion, 12 times the base offer, prompting the company to exercise its oversubscription of up to P5 billion,” RLC said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.
It said the strong demand from the fixed income community allowed the company to price its bonds at the tightest of spreads.
“With quarterly interest payments, the bonds carry a coupon of 5.3789 percent per annum and 5.9362 percent per annum for the three-year and five-year tenor, respectively,” RLC said.
The company said the issuances is the first tranche of its P30 billion, three-year debt securities program filed under shelf-registration with the Securities and Exchange Commission (SEC).
“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,” RLC president and chief executive officer Federick Go said.
“Proceeds from the first tranche will support business expansion and investment aimed at generating sustainable value for shareholders,” he said.
RLC said the sale of bonds forms part of the company’s strategy to diversify funding sources.
It said proceeds would 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.
The company engaged BDO Capital, BPI Capital Corp., China Bank Capital, First Metro Investment Corp. and SB Capital as the joint issue managers, joint lead underwriters and joint bookrunners for the transaction.
Selling agents of the transactions are East West Banking Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and Robinsons Bank Corp.
Local debt watcher Philippine Rating Services Corp. (PhilRatings) earlier gave RLC’s bonds the highest credit rating of PRS Aaa, with a stable outlook.
Obligations rated PRS Aaa are of the highest quality, with minimal credit risk.
“The obligator’s capacity to meet its financial commitment on the obligation is extremely strong. A stable outlook is an indication that the rating is likely to remain unchanged in the next 12 months,” PhilRatings said
The assigned issue credit rating takes into account RLC’s strong competitive position, high liquidity, sound capitalization, and its experienced management team.