Local Debt Market Holds First Corporate Bond Listing for 2015Posted on: February 24, 2015
23 February 2015, Monday – Robinsons Land Corporation (RLC) kicked off this year’s corporate bond listings, with its PhP 12 Billion fixed rate bonds due 2022 and 2025. The seven-year bonds maturing in 2022 carry an interest rate of 4.8000 percent per annum, while the ten-year bonds maturing in 2025 have an interest rate of 4.9344 per annum.
The Bonds have been rated PRS Aaa by Philippine Rating Services Corporation as of January 12, 2015. A “PRS Aaa,” the highest rating, means that such obligations are of the highest quality with minimal credit risk and that the issuing company’s capacity to meet its financial commitment on the obligations is extremely strong.
RLC is a returning Issuer in the PDEx organized secondary market. Its maiden listing was in July 2009 when it listed its PhP 10 billion fixed rate bonds due 2014. With this first listing for 2015, the JG Summit Holdings, Inc. Group of Companies’ cumulative level of outstanding bonds listed on PDEx stands at PhP 42 billion, representing almost 9% of the overall tradable corporate debt of PhP 477.01 billion.
The event was held at the PDS Assembly Hall and was graced by RLC Officers led by President & COO Frederick Go, RLC Treasurer Kerwin Tan, and JG Summit Holdings, Inc. VP & Treasurer Aldrich Javellana. Also present in the occasion were the issue’s supporters: Joint Issue Managers and Joint Lead Managers, BDO Capital and Investment Corporation, The Hongkong and Shanghai Banking Corporation Limited, SB Capital Investment Corporation, Standard Chartered Bank; and Co-Lead Underwriters, Development Bank of the Philippines, East West Banking Corporation.
RLC President & COO Frederick D. Go remarked: “I would like to thank the investors for their confidence in our bonds, (resulting to an) oversubscription. This is our second time to be here and this is the largest bond issuance of Robinsons Land to date at PhP 12 billion. These bonds will be used for the expansion of our businesses primarily our shopping center business, office building business, as well as our hotels.”
PDS Group President & CEO Cesar B. Crisol said in his welcome remarks: “Last year was a banner year for corporate securities in the registered market as the number of new listings picked up to 19 and 10 of which originated from new corporate bond issuers. Thirty-seven (37) separate corporate bond issues were listed reaching a record year-end total of PhP 191.85 Billion for new listings. The activity brought the total level of tradable corporate debt instruments to P470.31billion, a significant growth of 38.89% in the size of outstanding issues listed in 2013.”
“For this year, we look forward to maintaining the trend for more issuers to list bonds in the registered market as they tap the available capital from the investing public in line with the continued positive outlook and growth prospects for the Philippine economy,” continued Mr. Crisol. #