August 24, 2022

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Robinsons Land’s P15-B bonds get highest credit rating

PROPERTY developer Robinsons Land Corp. (RLC) received the highest credit rating, PRS Aaa, from Philippine Rating Services Corp. (PhilRatings) for its proposed P15-billion bond issuance.

“Philratings’ assignment of the highest issuer rating is a recognition of Robinsons Land’s strong fundamentals and financial stability. It is a vote of confidence in the company’s ability to create long-term shareholder value,” RLC President and Chief Executive Officer Frederick D. Go said in a disclosure on Wednesday.

Back in May, the company’s board of directors approved the offer and issuance of peso-denominated fixed rate bonds with an aggregate principal amount of up to P10 billion and an oversubscription option of up to P5 billion.

This is the first tranche of the company’s P30-billion shelf-registered debt securities program which was filed with the Securities and Exchange Commission (SEC) in June and was approved on Aug. 5.

According to PhilRatings, RLC’s rating of PRS Aaa means that the “obligator’s capacity to meet its financial commitment on the obligation is extremely strong.”

Meanwhile, a stable outlook suggests that the rating “is likely to remain unchanged” in the next 12 months.

RLC has a portfolio of 53 lifestyle centers, 28 office developments, five “workable” centers, 24 multi-branded hotel properties, seven industrial facilities, over 100 residential properties, and 20 mixed-use developments.

Proceeds from the fund-raising activity will be used to fund the development of malls, hotels and resorts, logistics and industrial facilities, and projects under residential and development divisions.

“A portion of the proceeds will likewise go to land acquisition, repayment of short-term loans, and general corporate purposes,” as stated in the SEC’s press release.

RLC engaged BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., and SB Capital Investment Corp. as joint issue managers, lead underwriters, and book-runners for the transaction.

“The company plans to list the bonds on the Philippine Dealing and Exchange Corp. within the year, subject to regulatory approvals,” the company said.

On Wednesday, shares in RLC climbed by 0.21% or P0.04 to P19.32 apiece. — Justine Irish D. Tabile