Robinsons Land Corp., the real estate unit of the Gokongwei Group, plans to issue up to P20 billion in fixed-rate bonds in July.
A registration statement filed with the Securities and Exchange Commission showed Robinsons Land would offer P10 billion in fixed-rate bonds, with an oversubscription option for another P10 billion from June 29 to July 10.
The bonds, with tenors of three-years and five years, will be issued and listed with Philippine Dealing & Exchange Corp. on July 17.
The company tapped BDO Capital and Investments Corp., BPI Capital Corp., ChinaBank Capital, First Metro Investments Corp. and Standard Chartered Bank as joint lead underwriters and book runners of the offering.
The bonds were rated PRS Aaa by Philippine Rating Services Corp. The rating is assigned to long-term debt securities of the highest quality with minimal credit risk.
Robinsons Land plans to use the proceeds from the bond offering to partially fund the capital expenditure budget for calendar years 2020 and 2021, partially repay short-term loans maturing in the second half of calendar year 2020 and fund general corporate purposes.
The documents showed that of the P20-billion expected proceeds, some P11.25 billion would be set aside for project development including construction of commercial centers, office buildings, hotels and resorts, residential and industrial and integrated developments.
About P1.5 billion will be allotted for land acquisitions covering 8.5 hectares in various areas in the country while P6 billion will be used to repay short-term loans. The remaining P1 billion will be for general corporate purposes.
Robinsons Land initially budgeted P27 billion in capital expenditures for 2020 but reduced the amount to P24 billion because of the coronavirus pandemic.
Robinsons Land had 788 hectares of land bank throughout the country as of end-March 2020.
The share price of Robinsons Land rose 4.2 percent Monday to close at P19.