Thursday, July 16, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
GOKONGWEI-LED property company Robinsons Land Corp. will tap the debt market again after the success of its first offering this year, announcing yesterday a plan to sell up to P5 billion worth of fixed-rate bonds.
In a disclosure, Robinsons Land said it intends to issue additional fixed-rate bonds worth P3 billion with an oversubscription option of an additional P2 billion subject to the approval of the Securities and Exchange Commission. "The proceeds from the bond issuance shall be utilized for capital expenditures," Robinsons Land said.
The property has tapped The Hongkong and Shanghai Banking Corp. Ltd. and SB Capital Investment Corp. as joint issue managers.
The P5-billion issue is the second bond offering of the company this year, a move which analysts have said would be the trend among firms for the rest of the year given difficulties in raising cash from the bearish stock market.
Earlier this month, the property company was able to raise P5 billion from retail bonds sold domestically, P2 billion more than originally planned due to substantial demand from both retail and institutional investors. The retail bonds carried a yield of 8.50% per annum and a tenor of five years and one day.
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, which include Vimana Verde Residences in Pasig. The property firm also plans to open its first budget hotel at Robinsons Cybergate Plaza in Mandaluyong this year.
In the first quarter, Robinsons Land earned P935 million in profits, a fifth higher from last year even if revenues declined by 4% to P2.71 billion.
Shares in the property developer did not move at P6.70 apiece yesterday. — K.J.R. Liu
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