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Robinsons Land’s P12-B bond sale plan cleared

Posted on February 08, 2015 09:50:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter

REGULATORS have approved a plan of Robinsons Land Corp. to raise up to P12 billion from a bond offer to partly finance its P17-billion spending budget for this year, the Securities and Exchange Commission (SEC) said over the weekend.

“The Registration Statement of Robinsons Land was approved in yesterday’s commission meeting,” Gerard M. Lukban, SEC commission secretary, said in a mobile phone reply on Friday.

The listed real estate investment arm of conglomerate JG Summit Holdings, Inc. will offer fixed-rate bonds worth P10 billion, according to a regulatory filing dated Feb. 3, a copy of which was sent by the SEC to reporters on Friday.

Robinsons Land has an option to sell another P2 billion to its arrangers BDO Capital and Investment Corp., Hongkong and Shanghai Banking Corp. Ltd., SB Capital Investment Corp. and Standard Chartered Bank.

The company has yet to announce the timetable for the offer, although it said in its prospectus that the bonds will have seven and 10-year maturities and will be priced at a premium over secondary market rates.

“The net proceeds of the Bonds will be utilized to refinance P8.10 billion worth of short-term debt maturing in the first quarter of 2015 while the remainder will be used to partially finance the Company’s capital expenditure requirements for 2015 and which will be disbursed within the first two quarters of 2015,” the document read.

The Gokongwei-led company earmarked P17 billion in capital expenditure for the year ending September, a portion of which will be used to open three new malls in Las Piñas City and the provinces of Antique and Cebu.

Robinsons will also expand its mall in Novaliches, a branch of Summit Hotel in Quezon City, and a Go Hotel in Butuan.

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