October 29, 2019 | 12:05 am ] bworldonline.com ]
CEBU Landmasters, Inc. (CLI) is issuing corporate notes to raise P2 billion to fund its capital expenditures and general corporate expenses.
The listed property developer said in a stock exchange disclosure yesterday it has signed a notes facility agreement with ALFM Peso Bond Fund, Inc. and ALFM Money Market Fund, Inc. for the 18-month debt security. The notes will have an initial fixed rate of 4.75%.
The proceeds will finance the company’s expansion plans, particularly land acquisition.
“CLI has several strategic land acquisitions lined up in greater Cebu, Bacolod, and Davao, with new expansion areas such as Iloilo, Butuan, and General Santos City also on the horizon,” it said.
CLI tapped BPI Capital Corp. to arrange the bond issuance.
The company in April said it is allocating P13 billion in capital expenditures this year, as it launches 29 new projects that can generate sales of about P25 billion. This means an additional 7,517 residential condominium units, 1,223 hotel rooms, and 161,034 square meters of gross leasable area under its portfolio.
The Cebu-based developer is aiming to reach a consolidated net income of P2.6 billion and parent net income of P2 billion by the end of 2019.
In the first semester of the year, CLI booked an attributable net income of P854.34 million, an increase of 13% from a year ago, driven by a 34% jump in revenues to P3.5 billion. — Denise A. Valdez
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