Robinsons Land sells P15B in bonds

MANILA – Property giant Robinsons Land Corp. achieved a new bond fundraising record after selling another P15 billion in debt paper amid “overwhelming” demand.

The developer, part of the Gokongwei conglomerate JG Summit Holdings, exercised the full P5 billion oversubscription option as total demand reached P25 billion or 2.5 times the base offer of P10 billion.

This came 10 months after Robinsons Land’s sold the first bond tranche of P15 billion that was met with orders that were 12 times the base amount.

“According to the banks, we also recorded the largest volume of orders from qualified institutional buyers among all the bonds that listed before us this year,” Robinsons Land president Frederick Go said during the bond listing ceremony on Friday.

“This strong market reception prompted us to fully exercise our oversubscription option and allowed us to price at the lowest end of the range, even amid a high inflationary environment,” he added.

Proceeds from the bond sale will be used to fully repay maturing debt obligations, partially fund the capital expenditure for project development, and support overall business operations.

Robinsons Land is one of the country’s biggest real estate companies. Its portfolio spans over 100 residential properties, 53 malls, 31 prime office projects, 25 hotels and seven industrial facilities.

The listing completes its P30 billion bond program that was previously registered with the Securities and Exchange Commission.

The new three-year and five-year bonds have respective rates of 6.0972 percent and 6.1663 percent per year.

The issuance also received the highest credit rating of PRS Aaa, with a stable outlook, from the Philippine Rating Services Corp.

“We are grateful to the investor community for their continued trust and confidence in [Robinsons Land’s] brand, reputation, and overall growth prospects. Proceeds from the offer will be used to further strengthen the company’s strategic investments aimed at increasing shareholder value,” Go said.

Robinsons Land engaged BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters and joint bookrunners for the transaction. Land Bank of the Philippines acted as the selling agent.

The developer earlier said first quarter 2023 net income surged by 90 percent to P2.66 billion as revenues jumped 39 percent to P9.28 billion.

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The article was originally published in Inquirer.NET and written by Miguel R. Camus.