CEBU Landmasters, Inc. (CLI) signed on Friday a P5-billion corporate notes facility agreement, with the proceeds to be used to acquire land in various cities and develop a business hub in Davao City.
“The proceeds of the notes will be used for the strategic land acquisition of the company in Cebu, Dumaguete, Bacolod, CDO, and Davao, including new expansion areas such as Bohol, Iloilo, Butuan, and General Santos City,” the company told the stock exchange on the day it signed the agreement.
“Part of the proceeds will also fund the development of the 22-hectare central business hub in Matina, Davao,” it added.
The notes facility agreement consists of seven-year corporate notes amounting to P2.5 billion at a fixed rate of 7.25%.
A 10-year corporate note worth P1.5 billion with a five-year repricing period was also included. The rate for the first five years is fixed at 6.75%, the company said.
The remainder, at P1 billion, consists of a 10-year corporate note at a fixed rate of 6.63%, CLI said.
CLI serves the full range of high-end, mid-market, economic and socialized housing segments, mostly in the provinces.
The banks that participated in the corporate notes agreement are Bank of The Philippine Islands, BDO Unibank, Inc., China Banking Corp. and Land Bank of the Philippines.
The fund-raising exercise was administered by issue manager BPI Capital Corp. and joint lead arrangers and bookrunners BPI Capital Corp. and BDO Capital and Investment Corp.
Cebu Landmasters appointed BPI Asset Management and Trust Corp. as the facility agent and paying agent.
On Friday, shares in CLI slipped by 1.50% to close at P4.59. — Victor V. Saulon