Cebu Landmasters receives permit to sell P5-B bonds

CEBU LANDMASTERS, Inc. has received from the Securities and Exchange Commission its permit to sell P5 billion worth of retail bonds for its maiden offering, it told the stock exchange on Tuesday.

The listed property developer said the issuance is the initial tranche of its shelf registration of fixed rate bonds amounting to P15 billion, which also received the order of registration from the regulator.

The P15-billion debt securities program is set to be offered in one or more tranches.

On Thursday last week, Cebu Landmasters said it had downsized the initial tranche of its shelf offering to P5 billion from P8 billion. The bonds have the following interest rates: 6.4222% for the 3.5-year series A, 6.9884% for the 5.5-year series B, and 7.3649% for the 7-year series C.

The offer period will run from Sept. 26 to 30, while its listing with the Philippine Dealing & Exchange Corp. is on Oct. 7.

Cebu Landmasters previously said that it was planning to use proceeds from the issuance to support its growth plans, primarily for market investments and land-banking activities.

In July, it received a credit rating of PRS Aa plus with a stable outlook from the Philippine Rating Services Corp.

A PRS Aa rating means that the issuance is of high quality and is subject to very low credit risk. It also indicates that the firm’s capacity to meet its financial commitment is very strong. A stable outlook means the rating is likely to be maintained or to remain unchanged in the next 12 months.

Cebu Landmasters is a Cebu-based company engaged in the development, sale, leasing, and management of real estate.

Its portfolio includes residential condominium units, subdivision houses and lots, townhouses, hotels, office projects, retail spaces, and townships.

At the stock exchange on Tuesday, Cebu Landmasters shares lost six centavos or 2.54% to P2.30 apiece. — Justine Irish D. Tabile