Sta. Lucia raises P4b from fixed bond issue 20 December 2015

Property developer Sta. Lucia Land Inc. successfully raised P4 billion from the issuance of fixed rate bonds due 2018 and 2021
Sta. Lucia increased the base offer of P3 billion due to a strong demand for the company’s maiden bond offering. It exercised P1 billion out of the P2-billion oversubscription option to cover the over-allotment.
The bonds, which was sold to investors between Dec. 11 and 16, will be listed with Philippine Dealing & Exchange Corp. on Dec. 22.
The company earlier set the final interest rate on series A, three-year retail bonds at 6.7284 percent per annum and Series B, 5.25-year retail bonds at 6.7150 percent a year.
Sta. Lucia plans to use the net proceeds from the bond offering to refinance the company’s secured loans and fund capital expenditure on land banking and ongoing real estate projects.
Sta. Lucia as of end September 2015 had P3.25 billion worth of secured loans with interest rates of between 4.75 percent and six percent and maturities between 2105 and 2018.
The company is also in discussions with several parties for its land banking activities in Quezon City, Rizal, Batangas, Laguna, Iloilo and Davao.
China Banking Corp. is the issue manager and lead underwriter of the offering, while Amalgamated Investment Bancorporation and BDO Capital & Investment Corp. are co-lead underwriters.
The retail bonds have been rated AA+ by Credit Rating and Investor Services Philippines Inc.
Sta. Lucia Land reported a 51-percent increase in net income to P514.2 million in the first nine months of the year from P339.8 million year-on-year.
Consolidated revenues stood at P2.25 billion, up 48 percent from P1.52 billion registered in the same period last year, with bulk of the revenues coming from real estate sales.
Sta. Lucia said it planned to double capital expenditures in 2016 to P4 billion from P2 billion in 2015 to finance land banking activities and construction of new subdivision projects.