CLI caps P15-B debt program with final tranche

Cebu Landmasters, Inc. (CLI) is set to raise up to P5 billion from a sustainability-linked bond (SLB) offering, the third and final tranche of its P15-billion debt securities program as the Visayas-Mindanao developer seeks to fund expansion and refinance maturing obligations.

CLI said on Monday that it filed a registration statement, preliminary prospectus, and preliminary offer supplement to the Philippine Stock Exchange, the Securities and Exchange Commission, and the Philippine Dealing & Exchange Corp. (PDEx) for the proposed issuance of Series F Bonds due 2029, Series G Bonds due 2032, and Series H Bonds due 2035.

The peso-denominated SLBs carry a base offer of up to P3 billion, with an oversubscription option of up to P2 billion, and will be issued at 100 percent of face value. The bonds are expected to be listed and traded on PDEx.

China Bank Capital Corp. will serve as issue manager, while it will join BPI Capital Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. as joint lead underwriters and bookrunners. RCBC Trust Corp. was tapped as trustee.

The offering, dated 26 September, follows CLI’s inaugural P5-billion SLB sale in March this year. 

The company expects to net about P2.96 billion from the base offer or P4.94 billion if the oversubscription option is fully exercised.

Proceeds will be used to refinance project development, settle maturing obligations in 2025, and support general corporate needs.

“CLI’s Sustainability-Linked Bonds obtained an exemplary credit rating of PRS Aa plus, with a Stable Outlook, from the Philippine Rating Services Corp.,” the company said.

As of the end of June, CLI's completed projects were 98 percent sold, with only P3.72 billion in remaining inventory. 

The company said it plans to launch more projects across VisMin and expand into Luzon to reach new markets and more homebuyers.