By: VG Cabuag
Gokongwei-led property developer Robinsons Land Corp. (RLC) on Tuesday said it will sell as much as P12 billion in fixed-rate bonds. The company said in its disclosure to the Philippine Stock Exchange that it will issue a principal amount of P10 billion in debt and an additional P2 billion as its overallotment option.
No other details were given as to where it will use the proceeds of the funds.
“[The issuance is] subject to the requirements of the Securities and Exchange Commission and the rating process of the Philippine Rating Services Corp.,” the company said.
In an earlier interview, Lance Gokongwei, the company’s vice chairman and COO, said the property developer was supposed to issue some P15 billion in debt, some P10 billion of which will be used to pay for loans of the same amount while the rest will be used for its capital expenditures. That loan already matured in July and August this year.
Frederick Go, the company’s president, said RLC is spending some P15 billion to P17 billion in capital expenditure for its fiscal year 2015, which starts in October.
The said expenditure was flat from this year’s spending.
Aside from the bond float, other sources of funding could be bank loans and internally-generated funds.
“Residential is always there but we always respond to market conditions so if market conditions are good the demand in there, then we’ll continue to build residential,” Go said.
RLC is experiencing flat sales growth of its residential segment since fiscal year 2013 at 18 percent and 14 percent growth in 2011 and 2012, respectively.
Go added that earnings and revenue this year should be consistent with the firm’s performance in the first nine months ending in June this year. He said he does not see any reason why it should go too far from the 6.4 percent profit growth reported for the first fiscal nine months.