Due to substantial demand, Robinsons Land will increase its peso-denominated retail bond issue to P5 billion or US$103.68 million.
James L. Go, Chairman and Chief Executive Officer of Robinsons Land Corporation, said that the company was very pleased with the overwhelming and positive reception by investors to RLC's debut in the local bond market. He added that the issue was more than four times oversubscribed. Go added that the strong support from bond investors highlighted the impressive credit standing of RLC and showed the market's confidence with the company.
RLC originally announced an issue size of P3 billion or US$62.2 million, and has opted to exercise its oversubscription option to issue an additional P2 billion or US$41.46 million worth of bonds to meet investor demand.
The Hongkong and Shanghai Banking Corporation Limited and SB Capital Investment Corporation were appointed as joint issue managers by RLC for the bond issue. Acting as joint lead managers and underwriters for the bond issue were BDO Capital & Investment Corporation, BPI Capital Corporation, HSBC, and SB Capital. HSBC was the sole bookrunner for the transaction.
The retail bonds carry a yield of 8.50 percent per annum and a tenor of five years and one day. Robinsons Land Corporation earlier announced that it will use the proceeds from the issue to fund capital expenditure requirements.
The bond issue has been assigned the highest credit rating of PRS Aaa by Philippine Ratings Services Corporation, indicating that the debt issue is of the highest quality with minimal credit risk and that the issuer’s capacity to meet its financial obligations is extremely strong. In assigning the rating, PhilRatings took into account RLC's consistent robust operating profit and strong cash flow from a diverse portfolio of real estate assets.
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