SEC clears Robinsons Land's P20-B bond offering

The Securities and Exchange Commission (SEC) has given the green light for listed property developer Robinson Land Corp.’s planned P20-billion fund raising through issuance of fixed-rate bonds.

In a statement Friday, the SEC said, it “considered favorably” the registration statement of Robinsons Land for its public offering of fixed-rate bonds worth P10 billion with an oversubscription option for P10 billion.

The Gokongwei-led property developer will offer the fixed-rate bonds at face value.

Also, the company has the discretion to offer the bonds in two series, Series C Bonds due 2023 and Series D Bonds due 2025.

Robinsons Land is expecting to net P9,871,346,875 from the base offer or P19,754,616,875 should it exercise the oversubscription option in full.

It  intends to use the net proceeds to partially fund its capital expenditure budget for 2020 and 2021; partially repay short-term loans maturing in the second half of 2020; and fund general corporate purposes including, but not limited to, working capital.

“The capital expenditure budget covers the expansion of the company’s investment and development portfolios, particularly the completion of new and/or the expansion of existing malls, offices, hotels, industrial facilities and residential properties, as well as the acquisition of land in various strategic locations across the country,” the SEC said.

The fixed-rate bonds, which have received a “PRS Aaa” rating from the Philippine Rating Services Corp., will be listed and traded on the Philippine Dealing and Exchange.

BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., and Standard Chartered Bank will serve as joint lead underwriters and bookrunners for the offer. —LBG, GMA News