Thursday, July 9, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
GOKONGWEI-LED Robinsons Land Corp. has raised P5 billion from retail bonds sold domestically, P2 billion more than originally planned, due to substantial demand from both retail and institutional investors.
"The company is very pleased with the overwhelming and positive reception by investors to Robinsons Land’s debut in the local bond market. The issue was more than four times oversubscribed and the support highlighted the market’s confidence with the company," Robinsons Land Chairman James L. Go said in a statement issued yesterday.
Regulators had allowed the property firm to raise P3 billion from bonds, with an oversubscription option of P2 billion in case of strong investor demand. The retail bonds carry a yield of 8.50% per annum and a tenor of five-year and one day.
Robinsons Land executives have said proceeds would be used to fund capital expenditure requirements.
The bond issue was assigned the highest credit rating of "PRS Aaa" by local credit watcher Philippine Ratings Services Corp., indicating minimal credit risk and the issuer’s capacity to meet financial obligations.
This year, the real estate arm of JG Summit Holdings, Inc. plans to spend around P8 billion, lower than the P9.5 billion in expenditures last year, taking a cautious stance amid a slowing economy.
Robinsons Land plans to launch five condominium projects this year, among which include Vimana Verde Residences in Pasig.
The property company also plans to open its first budget hotel, the Go Hotels, at Robinsons Cybergate Plaza in Mandaluyong this year.
In the first three months of the year, Robinsons Land earned P935 million in profits, a fifth higher from last year even if revenues declined by 4% to P2.71 billion.
The company attributed the gain to mall operations, office rentals, and residential projects, which managed to offset the decline in its hotel division.
Shares in the company did not move at P6.80 apiece yesterday. — K. J. R. Liu
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